El Salvador Buys 21 Bitcoin as Price Inches Closer to $50K

El Salvador’s President, Nayib Bukele, confirmed a new Bitcoin purchase on Twitter. At the time of writing, the government had purchased another 21 BTC, which was roughly worth $1 million.

In late November, the country’s leader announced the purchase of $5.4 million in Bitcoin.

El Salvador, which adopted the US dollar as its national currency in 2001, rendered Bitcoin legal tender in September.

Despite widespread criticism to Bitcoin integration and technical challenges with the government’s Chivo wallet, crypto supporters claim that the country’s major Bitcoin experiment might be a foreshadowing of the future.

El Salvador plans to issue a $1 billion Bitcoin-backed bond in 2022 in collaboration with Blockstream. Critics blame the decision on the government’s inability to obtain a $1.3 billion loan from the International Monetary Fund (IMF), which has been openly suspicious of the tropical nation’s bold Bitcoin investment. Analysts say that owing to their weak creditworthiness, Bitcoin bonds may make it more difficult for nations to obtain funding from traditional institutions.

The bond will be used to fund El Salvador’s Bitcoin city, which will be powered by volcanoes.

Given that the great majority of the population is unbanked, Bitcoin is viewed as a benefit for financial inclusion, despite early setbacks.

Patrick

Coincu News