El Salvador adds 150 more Bitcoins to its vaults – totaling over $ 32 million in Bitcoin
- This is the second time that President Bukele of
El Salvadorâbought the dropâ this month.
- El Salvador made
Bitcoinlegal tender on September 7, amid warnings and criticism from global financial institutions, like the International Monetary Fund (IMF).
- Despite the celebrations within the crypto community, the deployment of Bitcoin in El Salvador has not been without problems.
Despite experts’ concerns, El Salvador shows no signs of canceling its Bitcoin adoption plans. The country, which officially made Bitcoin legal tender earlier this year, has added an additional 150 BTC to its coffers.
We just bought the dip. 150 new pieces! El Salvador now holds 700 coins. # Bitcoin
– Nayib Bukele (@nayibbukele) 1632113624000
This means that El Salvador now has over $ 32.5 million worth of BTC. Bukele had sent a similar tweet on September 8 after Bitcoin’s first crash this month, announcing that he had bought another 150 Bitcoins. The country’s total tally currently stands at around 700 Bitcoin, based on Bukele’s announcements.
Data from Coin ATM Radar allows El Salvador to have the third largest crypto ATM network in the country after the United States and Canada, although it is only a fraction of their size. The number of machines installed represents 70% of all crypto ATMs in South America.
Even Bancoagricola, El Salvador’s largest bank, now accepts Bitcoin to pay off debts resulting from the use of its instruments.
Bitcoin legalization is not without pitfalls
Despite Bukele’s triumphant Bitcoin tweets, Bitcoin’s deployment in Salvador has not been hassle-free. The country’s Chivo wallet, intended to help citizens transact in Bitcoin, has encountered technical issues since its deployment. On September 7, the Wall Street Journal reported that the wallet did not appear in major app stores shortly after Salvador made legal tender. The report also states that Salvador plans to spend $ 225 million to buy Bitcoin. El Salvador’s acceptance of Bitcoin was a major boost, but major international monetary bodies and experts have warned against the move. On September 17, Reuters reported that experts feared the country might not reach a billion dollar loan deal with the International Monetary Fund (IMF) due to negative implications on credit due to its use. of Bitcoin.
âSome countries may be tempted by a shortcut: adopt crypto assets as national currencies. Many are indeed secure, easy to access and inexpensive to process. We believe, however, that in most cases the risks and costs outweigh the potential benefits, âthe IMF said in a blog post in July.
Bitcoin continues to decline
The price of Bitcoin crossed $ 50,000 on September 7 – just before El Salvador’s new Bitcoin law went into effect – but has been declining for about a fortnight now. At the time of writing, at 12:35 a.m. Indian Standard Time (IST), the price of Bitcoin was around $ 45,000, according to Coinmarketcap. Bukele’s tweet coincided with the cryptocurrency’s most recent price drop of around $ 2,000 in less than 24 hours.