According to a recent tweet, El Salvador is on a mission to buy a bitcoin a day. The elephant in the room remains whether it is a good decision to take this path after the recent crypto market plunges.
Amid the recent bearish crypto market, El Salvador plans to buy a bitcoin daily. El Salvador’s president Nayib Bukele announced this decision in a Twitter post on November 17. And while some think of the step as a bold move, some still wonder if the country is making rash and unwise decisions following the losses it incurred.
The country declared BTC a legal tender in late 2021, making El Salvador the first to incorporate Bitcoin directly into its economy. Most crypto experts then declared it a stupid move, while others hailed its crypto adoption steps.
Related: China ‘Seeks’ to refinance the El Salvador foreign debt
Now, after all the bitcoin purchased until July this year, the country holds 2381 BTC. Approximately the value of the coins during the purchasing time totals over $100 million. However, with current bitcoin prices, El Salvador faces over $65 million in losses, and maybe more if the markets continue their bearish outlook.
El Salvador continues to spur BTC adoption
On the brighter side, BTC adoption in the country significantly expands payment options within and beyond its borders. El Salvador’s citizens and others visiting the country can access cheaper, faster payments globally. Furthermore, it provided financial inclusion, which remains an issue that needs resolving in most developing countries globally.
Outside the financial sector, El Salvador is a trendsetter among other countries regarding crypto adoption. Given the expansion in the crypto and blockchain sector, the global population now knows the possibilities that lie in digital currencies. Additionally, it is a chance to educate more people on blockchain technology and crypto.
What to expect
Arguably, the gamble may cost El Salvador’s people more if the crypto sector and exchanges continue downward. However, the country will be the greatest beneficiary if there is a future for the currencies and more transparency in the industry. All the same, the global community needs to wait out for the future to define the next step.
