El Salvador’s finance minister defends the government’s decision to legalize bitcoin. Alejandro Celaya also assures that the issuance of a billion dollar bond backed by BTC is not in doubt.
Is El Salvador legalizing bitcoin and investing public money in buying bitcoins correctly? This policy choice is being criticized in the US, by the IMF, and among the public.
In an interview with Bloomberg, the country’s finance minister, however, continues to support BTC and the government’s policies. El Salvador spent millions of dollars to acquire 2,381 bitcoins.
Bitcoin capital fell by 50%
Since then, the value of the first of the crypto assets has lost about 50% in terms of capitalization. However, Alejandro Celaya assures that there are benefits from the legalization of cryptocurrency.
The minister refers, in particular, to access to financial services for a significant part of the country’s population that does not use banking services. The head of finance also highlights the results in terms of attracting investors and tourists.
As for bitcoin’s more direct contribution, you’ll have to be patient, Zelaya defends. “We will not have results overnight. We cannot go to bed poor and wake up millionaires,” the minister said.
Therefore, everything is a matter of time and acculturation, he promotes. Thus, the current situation with the country’s finances and the price of cryptocurrencies do not call into question El Salvador’s projects.
Bitcoin City is still relevant
As such, the country is still planning to issue one billion dollars worth of Bitcoin bonds to provide funding for these projects, including the Bitcoin City project. This aspiration will be realized when market conditions are more favorable, the member of the executive branch specified.
More bitcoin announcements are promised in the coming months. In 2022, El Salvador is also due to conclude an agreement with the IMF, with which negotiations are underway for a $1.3 billion bailout.
However, the International Monetary Fund is pressuring the Central American country to abandon its pro-bitcoin policy. His help may even be due to this. Thus, the IMF demanded commitments from Argentina to regulate cryptocurrencies.
However, for Alejandro Zelaya, cryptocurrency and traditional finance are compatible. “I believe in the traditional international monetary system, just as I believe that new technologies will help people in the future.” However, there is no guarantee that the IMF will agree with this analysis.
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