El Salvador buys 500 bitcoins taking advantage of its low price

El Salvador acquired 500 bitcoins for 15.3 million dollars, taking advantage of the drop in the price of the cryptocurrency that is legal tender in the country, President Nayib Bukele announced Monday.

El Salvador “just bought” at a time of a fall in its value “500 coins at an average price of 30,744 dollars,” the president said on his Twitter account.

This is not the first time that the government has announced the purchase of this cryptocurrency when its price is falling. Already last January he bought 410 bitcoins when each one was around 36,456 dollars.

With the latest acquisition, El Salvador has 2,301 bitcoins.

El Salvador became the first country in the world to officially use bitcoin on September 7, 2021, legalizing its use in all transactions at par with the US dollar, the official currency for two decades.

When Bukele launched his plan, bitcoin was around $47,000 and in early November of last year, it reached $67,000. Bukele took advantage of those profits to build a public veterinary hospital.

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However, since that rise, its price has been declining.

The Salvadoran decision to adopt bitcoin as legal tender caused controversy. Earlier this year, the International Monetary Fund (IMF) urged the country to annul this measure, considering that the use of this cryptocurrency entails “great associated risks.”

El Salvador has a public debt of around 90% of its GDP and is negotiating a $1.3 billion loan with the IMF to clean up its coffers.

It also has an issue of bonds in bitcoin equivalent to 1,000 million dollars pending, for the construction of its Bitcoin City, a city in the east of the country, and which it plans to operate with thermal energy from the Conchagua volcano.

Recently, the Minister of Finance, Alejandro Zelaya, said that “it will be the president” who will give the order of when this issuance of debt papers will be made in bitcoin. In Zelaya’s opinion, “the ideal date” to put the bonds on the market is during “the first semester” of the year.

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