El Salvador buys the dip; Adds 500 BTC to its coffers

El Salvador, the only country that accepts Bitcoin (BTC) as legal tender, has added 500 BTC to its balance sheet. Nayib Bukele, the country’s president, announced this bullish news through a tweet yesterday. According to Bukele, El Salvador bought the dip after the flagship cryptocurrency plunged to the $30,000 level.

Bukele’s tweet read,

El Salvador just bought the dip! 🇸🇻 500 coins at an average USD price of ~$30,744 🥳

While El Salvador bought BTC at an aggregate price of $30,744, data from CoinMarketCap shows BTC traded as low as $29,944.80.

Since then, the coin has regained some of its losses. At the time of writing, BTC is down 4% over the past 24 hours to change hands at $31,881.16. This price represents a 53.69% drop from BTC’s November 10 all-time high of $68,789.63.

Notably, yesterday’s purchase is the largest amount of BTC the country has bought since it made BTC legal tender in September last year. El Salvador now holds around 2,301 BTC worth around $73 million. 

Bukele continues steering El Salvador the BTC way

This news comes as Bukele continues pushing for El Salvador to fully embrace BTC despite mounting criticism. Before this purchase, he announced plans to offer the first sovereign BTC-backed bonds worth $1 billion. With these funds, the Salvadoran government plans to build Bitcoin city at the base of Conchagua, a stratovolcano in southeastern El Salvador.

However, El Salvador’s BTC-related plans have been subject to a lot of criticism. For instance, the International Monetary Fund (IMF) said the country’s decision to embrace BTC as legal tender poses threats to financial stability.

Additionally, the IMF said BTC could impact financial integrity and consumer protection. These plans seem to have deterred the IMF from issuing El Salvador a $1.3 billion loan, which the country has been trying to secure since early 2021.

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Apart from external parties, a significant percentage of Salvadorans also oppose Bukele’s decision to embrace BTC as legal tender. Their primary argument is that the government could use the funds it injects into BTC to alleviate problems in the country.

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