cloudyn.png
Tuesday August 16th, 2022 9:58PM

Bitcoin-boosting Salvadoran leader asks for patience

By The Associated Press
Related Articles
  Contact Editor

SAN SALVADOR, El Salvador (AP) — El Salvador’s Bitcoin-boosting president has asked people to be patient after the price of the cryptocurrency fell below $20,000 — less than half the price the government paid.

According to the tracking site nayibtracker.com, El Salvador under President Nayib Bukele’s administration has spent about $105 million on Bitcoin, starting last September and paying an average of almost $46,000 per coin.

The value of that investment in the currency, also known as “BTC," is now calculated to have fallen by over 57%, or around $61 million.

“I see that some people are worried or anxious about the #Bitcoin market price,” Bukele wrote in his Twitter account late Saturday. “My advice: stop looking at the graph and enjoy life. If you invested in #BTC your investment is safe and its value will immensely grow after the bear market.”

“Patience is the key,” the president wrote.

On Tuesday, when a Bitcoin publication crowed that El Salvador has lost “only” $40 million on its investment, Bukele tweeted with apparent incredulity: “You’re telling me we should buy more #BTC?”

Bukele became the first leader in the world to make the cryptocurrency legal tender last year and was a devoted booster at least up to May, when he boasted of “buying the dip” in the currency’s price. But the coin has slid further since then.

Finance Minister Alejandro Zelaya sought to put a good face on the situation Wednesday in an interview with a local television station, saying that because El Salvador hasn’t sold any of its Bitcoins, it hasn’t really suffered any loss.

“When they tell me that El Salvador’s budgetary risk has increased because of the supposed loss, that loss doesn’t exist,” Zelaya said. “That must be made clear, because we have not sold.”

However, most companies and governments do write down the value of what accountants call an “unrealized loss,” even if they don’t sell the distressed asset.

Zelaya also insisted the Bitcoin slide doesn’t matter very much for El Salvador, saying that “this doesn’t even represent 0.5% of our budget.”

That might prove a hard sell in a country where about one-fifth of the people live on less than $5.50 per day.

In January, El Salvador rejected a recommendation by the International Monetary Fund to drop Bitcoin as legal tender.

Zelaya said at the time that “no international organization is going to make us do anything, anything at all,” calling it an issue of “sovereignty.”

The IMF recommended that El Salvador dissolve the $150 million trust fund it created when it made the cryptocurrency legal tender and return any of those unused funds to its treasury.

The IMF cited concerns about the volatility of Bitcoin prices, and the possibility of criminals using the cryptocurrency.

Bukele has touted Bitcoin as a way to significantly increase financial inclusion, drawing millions of people who previously lacked bank accounts into the financial system. He has also spoken of the parallel tourism promotion targeting Bitcoin enthusiasts.

Bukele led the push to adopt Bitcoin as legal tender alongside the U.S. dollar. El Salvador’s Legislative Assembly made the country the first to do so in June 2021.

  • Associated Categories: Associated Press (AP), AP National News, AP Online National News, Top General short headlines, AP Business, AP Business - Financial Markets
© Copyright 2022 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Huske, Dressel claim more golds for U.S. at swimming worlds
Torri Huske and Caeleb Dressel have claimed more gold medals for the United States in butterfly races at the world swimming championships
2:12PM ( 28 minutes ago )
Bitcoin-boosting Salvadoran leader asks for patience
El Salvador’s Bitcoin-boosting president is asking people to be patient after the price of the cryptocurrency fell below $20,000 _ less than half the price the government paid
2:07PM ( 33 minutes ago )
Williams helps Storm beat Liberty in Bird's New York finale
Gabby Williams scored a season-high 23 points in Seattle’s 81-72 win over the New York Liberty in what was Storm guard Sue Bird’s final regular-season game in her hometown
2:07PM ( 33 minutes ago )
Associated Press (AP)
Tight Colombian runoff pits former rebel against millionaire
Colombians are cloosing between a leftist former rebel and an unpredictable millionaire in a presidential runoff election that promises to reshape the country after a first round of voting that punished the established political class
11:57AM ( 2 hours ago )
‘Lightyear’ stays earthbound, ‘Jurassic World’ holds No. 1
“Lightyear” did not go to infinity (or beyond) in its first weekend in theaters
11:53AM ( 2 hours ago )
Morale is concern as NATO chief warns war could last 'years'
British defense officials assessing the intense fighting in the Donbas region of Ukraine bordering Russia say morale among troops on both sides is likely growing troubled
11:43AM ( 2 hours ago )
AP National News
Black Americans living abroad reflect on Juneteenth
As the United States marks only the second federally recognized Juneteenth, Black Americans living overseas have embraced the holiday as a day of reflection and an opportunity to educate people in their host countries on Black history
7:50AM ( 6 hours ago )
US opens COVID vaccine to little kids; shots begin this week
U.S. health officials have opened COVID-19 vaccines for infants, toddlers and preschoolers — the last group without the shots
7:29AM ( 7 hours ago )
8 more dead as India's Assam state reels under floods
Massive flooding and mudslides in northeastern India’s Assam state have claimed eight more lives, taking the death toll to 62 from weeks of heavy rains that caused one of Asia’s largest rivers to overflow
6:30AM ( 8 hours ago )
Top General short headlines
Prada mixes nostalgia and grunge for summer 2023 menswear
Miuccia Prada and Raf Simons offered a nostalgia play for next season, mixing gingham, coming from the feminine world, with masculine menswear
12:05PM ( 2 hours ago )
Danish ex-foreign minister Uffe Ellemann-Jensen dies at 80
Uffe Ellemann-Jensen who was Denmark’s foreign minister for more than 10 years from the early 1980s and was considered one of the Nordic region’s key politicians in the end phase of the Cold War, has died
11:25AM ( 3 hours ago )
Germany to limit use of gas for electricity production
Germany’s economy minister says the country will limit the use of gas for electricity production amid concerns about possible shortages caused by a reduction in supplies from Russia
9:08AM ( 5 hours ago )
AP Business
Wall Street closes worst week since 2020 with slight gain
Wall Street closed out its most punishing week since the 2020 coronavirus crash with a meandering day of trading Friday that left it a bit higher
4:37PM ( 1 day ago )
Stocks eke out a gain but still mark worst week since 2020
Stocks ended another bumpy day mostly higher on Wall Street but still wound up with their biggest weekly losses since March 2020, when markets went into freefall at the onset of coronavirus lockdowns
4:13PM ( 1 day ago )
Stocks drift higher on Wall Street at close of a brutal week
U.S. stocks are drifting upward on Friday, as Wall Street nears the end of one of its worst weeks since the 2020 coronavirus crash
3:02PM ( 1 day ago )
AP Business - Financial Markets
Huske, Dressel claim more golds for U.S. at swimming worlds
Torri Huske and Caeleb Dressel have claimed more gold medals for the United States in butterfly races at the world swimming championships
2:12PM ( 33 minutes ago )
Williams helps Storm beat Liberty in Bird's New York finale
Gabby Williams scored a season-high 23 points in Seattle’s 81-72 win over the New York Liberty in what was Storm guard Sue Bird’s final regular-season game in her hometown
2:07PM ( 38 minutes ago )
US Open updates: Pin placements recall memorable TCC events
Grayson Murray is getting a lot of TV time at the U.S. Open — for all the wrong reasons
2:03PM ( 41 minutes ago )
Macron alliance projected to lose parliamentary majority
Projections show French President Emmanuel Macron’s alliance has received the most seats in the final round of the parliamentary election
2:03PM ( 42 minutes ago )
'Mr. Game 7' Justin Williams back in Cup Final as an analyst
“Mr. Game 7” is back in the Stanley Cup Final, but in a much different role than before
1:59PM ( 45 minutes ago )