El Salvador Finance Minister Claims That The Country’s Adoption Strategy For Bitcoin Is Successful

El Salvador‘s finance minister defended the country’s plan to make Bitcoin legal tender, despite calls from detractors for it to be abandoned as the cryptocurrency industry experiences a bear market.

Alejandro Zelaya said the digital currency has given financial services to a population that is mostly unbanked, boosted tourists, and drawn investments almost a year after the nation placed its bet on it. He said he continues to trust in digital money even though its use as a medium of trade is minimal and added that the government is still preparing to issue a Bitcoin-backed bond utilizing blockchain technology.

El Salvador’s adoption of bitcoin (BTC) as legal tender is working despite the over 50% losses the government has incurred on its purchases, the country’s finance minister said.Alejandro Zelaya said in an interview with Bloomberg on Wednesday that bitcoin adoption has been beneficial to El Salvador’s unbanked population and also attracted tourism and investments. “It’s a phenomenon that exists and is gaining ground and will continue to be around in the coming years,” he said.

From September last year to the start of this month, El Salvador has purchased 2,301 BTC for a total of $103.9 million. As of the start of July, its portfolio was worth $46.6 million, a decline of over 55%. With the recent uptick in the crypto markets, the portfolio is now worth around $55.3 million.

El Salvador has faced criticism from mainstream financial institutions for its crypto adoption

In January, the International Monetary Fund (IMF) urged the country to discontinue bitcoin’s legal tender status.

“New technologies have shown how people in previous years were afraid of things like websites and digital business, but it’s been show through time that reality imposes itself,” Zelaya added.

El Salvador had plans earlier this year to introduce a $1 billion bitcoin bond but postponed it in March due to unfavorable market conditions. Zelaya said that the government will revisit this once conditions improve.

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