El Salvador Buys Bitcoin for $1.5 Million, Bukele Says

president El Salvador, Najib Bukele, announced on Thursday the purchase of 80 Bitcoin to more than $1.5 million at a time when the value of crypto assets fell by nearly 60% in 2022.

El Salvador today bought 80 #BTC (Bitcoin) at $19,000 each! #Bitcoin is the future! Thanks for selling cheap.” The president posted on Twitter in a message in English.

As of Thursday, the Central American country had purchased 2,301 units of bitcoin, without the government providing a statement on how many units it held in reserve or had sold.

The market’s most popular cryptocurrency continues to free fall and this Thursday just barely crosses $19,000, which it will close out the first half of the year with some losses of approximately 60% of its value, According to data from Bloomberg consulted by Efe.

Similarly, the cumulative drop from the maximum reached last November, when Bitcoin touched $69,000, is 72%.

In the face of this drop in value, El Salvador’s Finance Minister, Alejandro Zelaya, stated that the country did not record losses, as no coins were sold.

However, local media reports that the official said this in mid-June They sold some coins to finance the construction of a veterinary hospital.

The International Monetary Fund (IMF), an entity with which the Bukele government is negotiating an agreement worth up to 1,400 million, urged the country to “restrict the scope of Bitcoin law by removing its legal tender status” and also expressed “concern” over the issuance of bonds backed by cryptocurrency.

Risk rating agencies have pointed to the increasing need for funding to be received by the Salvadoran government, which in 2023 Should pay out $800 million in Eurobonds.

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