El Salvador leaders pushing Bitcoin seek patience

San Salvador, El Salvador (AP) — The president behind El Salvador’s Bitcoin has patiently urged people to be less than half the price paid by the government after the price of cryptocurrencies fell below $ 20,000.

According to tracking site nayibtracker.com, El Salvador, under the control of President Nayib Bukele, has spent about $ 105 million on Bitcoin since September last year, paying an average of about $ 46,000 per coin.

The value of its investment in a currency, also known as “BTC,” is now calculated to have fallen by more than 57%, or about $ 61 million.

“Some people seem to be worried or worried about the market price of #Bitcoin,” Bukele wrote in his Twitter account late Saturday. “My advice: Stop looking at the graph and enjoy your life. If you invest in #BTC, your investment is safe and its value will be very large after the bear market.”

“Patience is the key,” the president wrote.

Bukele clearly tweeted incredibly when a Bitcoin publication shouted on Tuesday that El Salvador had lost “only” $ 40 million in its investment: “You buy us more #BTC. Do you say it should be? “

Bukele became the world’s first fiat leader last year and was a devoted booster until at least May, when he boasted of “buying a fall” in currency prices. But since then, the coin has slipped even further.

Treasury Minister Alejandro Zelaya tried to turn to the situation on Wednesday, saying in an interview with a local television station that El Salvador did not sell Bitcoin and was not actually suffering a loss.

“When they told me that the budget risk in El Salvador had increased because of the expected loss, that loss does not exist,” Zeraya said. “We don’t sell, so we need to clarify that.”

However, most businesses and governments write down the value of what accountants call “unrealized losses,” even if they don’t sell bad assets.

Zeraya also argued that Bitcoin slides were not so important to El Salvador, saying “this is not even 0.5% of our budget.”

This may prove to be poorly sold in countries where about one-fifth of the population lives on less than $ 5.50 per day.

In January, El Salvador rejected the International Monetary Fund’s recommendation to remove Bitcoin as fiat currency.

At the time, Mr. Zeraya said, “International organizations do nothing to us,” calling it a matter of “sovereignty.”

The IMF recommended that El Salvador dissolve the $ 150 million trust fund it created when it created the fiat currency of cryptocurrencies and return those unused funds to the Ministry of Finance.

The IMF has cited concerns about Bitcoin price volatility and the potential criminals to use cryptocurrencies.

Bukele promoted Bitcoin as a way to significantly increase financial inclusion, drawing millions of people who did not previously have a bank account into the financial system. He also talked about parallel tourism promotions for Bitcoin enthusiasts.

Bukele led the move to adopt Bitcoin as fiat currency alongside the US dollar. The El Salvador legislative assembly first did so in June 2021.