In a recent interview, the Minister of Finance in El Salvador defended the state’s BTC strategy. The minister highlighted how the country has benefited from making BTC legal tender.
Minister Says BTC Has Increased Tourism And Financial Investment
On July 27th, the minister, Alejandro Zelaya, noted that making BTC a legal tender has been beneficial to its unbanked population. Additionally, BTC has increased the number of tourists and foreign investment.
Meanwhile, there are critics who believe the country took the wrong decision. Among them is the IMF which believes the country will suffer from the present bearish market.
However, the minister is not disturbed by the criticism despite the low usage of BTC as currency in the state.
The minister remains hopeful about cryptocurrency and believes the market will rise soon. Also, the President has been bullish on BTC despite the currency trading below $20k for a while.
As stated by Bloomberg, the country still has plans to issue BTC-backed bonds. According to Zelaya, this would take place after the crypto market improves.
Also, the country is still moving on with its “BTC city” plans. The minister said the country would announce more incentives soon. Zelaya said the country acknowledges that its BTC investment is a long-term process.
Hence, El Salvador is willing to wait for results to come out. Also, he mentioned how people were afraid of new technologies in the past, such as digital businesses and websites.
Crypto Market Show Green As BTC Crossed $24,000
Meanwhile, Zelaya noted that he trusts the current monetary system the same way he believes these new technologies can bring improvement.
In other news, the country’s Bitcoin vault is about 2,381 coins. This is worth over $57 million based on the current price of BTC.
According to Nayib Tracker, El Salvador will lose over $50 million if it decides to sell its BTC holdings. At the start of the week, the President of the country said it has enough funds to buy back all its debt bonds from now till 2025.
In the early hours of July 29th, the crypto market was in the green region, including the flagship currency, Bitcoin. For the first time in almost two months, the currency soared above $24,000.
As of the time of writing, Bitcoin has slipped slighting and is trading at about $23,839. However, the currency is facing great resistance in this region and needs more buyers to enter the market.
However, despite the current recession in the US, several crypto holders are still holding on to their digital assets.
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