September 22, 2021

Ukraine Breaking News

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El Salvador bought bitcoin as prices fell and Bukele thanked the IMF

The government of El Salvador bought another 150 bitcoins (BTC) this Tuesday, September 7, worth around $ 7 million. The announcement was made on Twitter by President Nayib Bukele himself in # BitcoinDay , a tag used in the microblogging in reference to the adoption of cryptocurrencies as legal tender.

The day before, the Central American country bought its first 400 bitcoins and this Tuesday the government made a new acquisition to complete 550 BTC . The announcement came after bitcoin experienced a steep drop of more than 14%, which took it below $ 45,000 after surpassing $ 52,000 on Monday for the first time in the past 4 months.

“Thanks for the drop,” Bukele noted using bitcoiner jargon which refers to buying BTC when the cryptocurrency’s price falls to take advantage of the discount. He addressed his gratitude to the International Monetary Fund (IMF) accompanying with the phrase: “we have saved a million of printed paper. El Salvador now has 550 bitcoins ”.

In the past, the president has referred to the high cost that the government assumes when exporting dollars in cash and bring them into the country from the United States. On this, he claimed that bitcoin adoption is much cheaper.

Bukele said adopting bitcoin allows access to financial services for those without a bank account. Source: Screenshot / Twitter.

As reported by CriptoNoticias last June, the IMF said that “the adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal problems”.

Your comment shows that Bukele disagrees with the international organization’s approach , especially if you have already marked the distance by adopting a protocol that favors savings. In doing so, it also dismissed the entity’s remarks earlier this year when it recommended planners around the world to adopt an expansive fiscal and monetary policy.

“My message is ‘please spend’, spend as much as you can and then spend a little more,” said IMF chief executive Kristalina. Georgieva.

This Tuesday, different ecosystem players supported Bukele’s bitcoin commentary. One of them was the market analyst Willy Woo who said: “Cash is junk, gold is old”. It seems to indicate that bitcoin is one of the few alternatives that exist today when it comes to hedging against issuing money.

Woo’s comment is also directed to bitcoin critic and gold maximalist Peter Schiff who told Bukele: “Be careful what you want. Fall could end up being much bigger than expected! “