El Salvador’s Minister of Finance, Alejandro Zelaya, responded to recent media criticisms of the country’s Bitcoin (BTC) investment plan by labelling the charges of fiscal hazards very shallow.
Zelaya replied emotionally to a journalist’s query on the government’s response to Bitcoin’s steep decline during a news conference on Monday. There is an explicit critique of Bitcoin as such, not of El Salvador’s approach. El Salvador is the least of their concerns; they do not care about our economy, people, or inflation.
The official emphasised the improperness of claims that the country’s budget had lost almost $40 million due to the price decline since October 2021, when El Salvador acquired its first batch for $60,300 per BTC. Zelaya alluded to the potential prospect of a BTC comeback, stating he consistently stated that the alleged $40 million loss has not occurred since they did not sell the coins.
El Salvador had no losses amid Bitcoin’s Price Decline. Image: CoinCulture
Zelaya also dismissed the notions of a substantial fiscal danger as absurd and foolish, describing it as very low.
El Salvador now possesses 2,301 Bitcoin, worth around $50 million. That is less than half of the amount invested in Bitcoin by the nation in October 2021 and May 2022, when Bitcoin was valued at $30,700 per coin.
BTC has been dropping since its all-time high in November 2021 (approximately $69,000), with the downtrend strengthening during the last month and a half due to market-shaking events. These include the failure of Terra (LUNA, now L and the debacle of a primary Defi lender, Celsius, and the global inflation rise.
