Alejandro Celaya, El Salvador’s finance minister, has responded to recent media attacks on the nation’s Bitcoin (BTC) investment strategy by calling allegations of fiscal risk “extremely superficial.”
During a press conference held on Monday, Zelaya answered to a journalist’s question about the government’s emotional reaction to the sharp drop in bitcoin:
“There is clear criticism of Bitcoin as such, not El Salvador’s strategy. El Salvador interests them the least, they [the media outlet] they are not interested in what is happening to our economy, they are not interested in what is happening to our people, what is happening to inflation.”
The official underlined the unfoundedness of the claims that the country’s budget has lost about $40 million due to the fall in the value of the cryptocurrency since El Salvador purchased its first potion at a price of $60,300 per BTC in October 2021. Celaya pointed to the hypothetical possibility of a BTC bounce:
“I have repeatedly said: the alleged loss of $40 million did not happen because we did not sell the coins.”
Zelaya also dismissed suggestions of high fiscal risk as laughable and ignorant, calling the risk “extremely minimal.”
The fall in the price of bitcoin does not affect El Salvador: “It’s time to buy more,” MP Dania Gonzalez says.
El Salvador currently holds 2,301 bitcoins, which is about $50 million at press time. In fiat terms, this is less more than half of the money the country invested in bitcoin through its purchases in October 2021 and May 2022, when bitcoin was worth $30,700.
Like the entire crypto market in general, BTC has been declining since its all-time high in November 2021 (around $69,000), with the downtrend accelerating over the past month and a half following a series of shake-ups such as the crash of Terra. and the fiasco of major DeFi lender Celsius, as well as Global rising inflation.
Credit : cointelegraph.com