Alejandro Zelaya spoke about the benefits of BTC. Increased investments and a tourism boost are among these advantages. El Salvador went down 47% on its BTC investments.
The finance minister of El Salvador has defended the country’s Bitcoin plans, highlighting the advantages that it provides to the country. In an interview on July 27, Alejandro Zelaya expressed that Bitcoin usage as legal tender has enacted financial services to a large population that doesn’t count on a financial background. It has also seduced foreign investment and boosted tourism.
After El Salvador made bitcoin legal tender, it became a spot for tourists, with foreign tourists outside of the continent growing in number. Previously, many of these tourists would come from neighboring nations in Central America. Tourists from the United States of America make up at least 60% of the figure.
Not everyone agrees, especially now that the asset resides deep inside a bear market. The experiment got criticized by the International Monetary Fund, among other institutions in the field.
Zelaya stated that, while its usage as a regular asset is still low, he still thinks of digital money. He added that it’s something new, and people still don’t entirely understand; it has now become a phenomenon that came here to stay. Bitcoin is a gaining field and will continue to be around in the upcoming years.
Bitcoin Projects are Still under the Radar
According to Bloomberg, the Salvadoran Administration still intends to issue Bitcoin-backed bonds. Zelaya expressed this activity will take effect once the market conditions reach a new level. The “Bitcoin City” strategies are still moving forward, and more incentives will get revealed soon.
Zelaya also expressed that results would not appear immediately. He said it is impossible to get people out of poverty in the blink of an eye.
New technologies have shown how people in previous years kept distant from issues like websites and digital business, but there is evidence that reality imposes itself. Now, people show less fear about showing their interest in topics like the internet or digital banks.
Zelaya said he firmly believes in the traditional, international monetary structure in the same way that he believes new technologies would assist human beings in the upcoming years.
El Salvador’s BTC stash currently stands at 2,381 coins worth $57 million at current costs. The country would be down 47%, or $50 million, just in case it liquidated the lot today, according to the Nayib Tracker website.
Earlier this week, President Nayib Bukele revealed that the nation counted on enough funding to voluntarily purchase back sovereign debt bonds before they matured in 2023.
Bitcoin and crypto markets appear to be in the green line today as BTC approached $24,000 for the first time in seven weeks on July 29.
BTC had cooled slightly to trade at $23,979, but it’s facing strong resistance at the current stage. A technical recession following two-quarters of negative GDP in the United States of America has not generated the crypto panic selling that many expected.
By: Jenson Nuñez