December 2, 2022

El Salvador bought bitcoins again

Amid the panic caused by the decline in the price of bitcoin in recent days, El Salvador continues to methodically buy digital gold. Last night, President Nayib Bukele announced that the government was buying an additional 500 BTC. On average, each bitcoin this time cost the treasury $30,744.

Bitcoin acceptance law in El Salvador entered into forceforce last fall. Then the government of the country began large-scale purchases of bitcoins, buying at every suitable strait. The authorities have created a special fund for this in the amount of $150 million. Prices in El Salvador can be set in bitcoins, and taxes can also be paid in the first cryptocurrency. The exchange of bitcoin for fiat currency is not subject to capital gains tax, while bitcoin can be exchanged for dollars at the market rate. All enterprises in the country are required to accept the first cryptocurrency.

In February, Salvadoran President Nayib Bukeleboasted that the country showed double-digit GDP growth, exports in January 2022 increased by 13.7% compared to January 2021. And according to the Minister of Tourism of El Salvador Morena Valdez (Morena Valdez), the tourism industry in El Salvador has grown by more than 30% since since the passage of the bitcoin law in September 2021.

However, in El Salvador, not everything is as smooth asseems at first glance. Last week, Treasury Secretary Alejandro Zelaya announced that the much-talked about Bitcoin bond issue had been postponed indefinitely by the Treasury. The Minister of Finance connected the postponement of the bond issue with a military special operation on the territory of Ukraine, an increase in oil prices, inflation, and an increase in the base rates of the US Federal Reserve System (FRS). Another reason was the fall in the price of bitcoin.