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El Salvador Minister Says Bitcoin Crash Poses Fiscal Risk
El Salvador's Finance Minister, Alejandro Zelaya, downplayed fears that a significant decline in bitcoin's value would harm the Central American country's finances on Monday.
El Salvador's Finance Minister, Alejandro Zelaya, downplayed fears that a significant decline in bitcoin's value would harm the Central American country's finances on Monday.
Despite opposition from the International Monetary Fund and credit agencies, El Salvador became the first government to declare bitcoin legal money alongside the US dollar in September.
"The only thing I can do is grin when they tell me that the budgetary danger for El Salvador as a result of Bitcoin is really great," Zelaya remarked at a news conference. "Financial risk is very low."
El Salvador's government has acquired 2,301 units of the cryptocurrency since September, when it hit its lowest value since 2020 on Monday.
According to Zelaya, the country's bitcoin holdings has lost $40 million in value, according to a previous assessment by Deutsche Welles.
He said, "Forty million dollars is hardly even 0.5 percent of our national general budget."
Since becoming legal cash in the nation, Bitcoin's value has plummeted by half.
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