El Salvador took advantage of a nearly 20% drop in the price of bitcoin
El Salvador president ordered the purchase of an additional number of BTC into a special fund.
On September 7, bitcoin was losing almost 20% in the moment, dropping to $42,900. El Salvador’s leadership responded by announcing that it was buying another 150 BTC into a special fund that focuses on the development of cryptocurrency infrastructure in the country. Earlier in the week, 400 BTC were bought. Thus, this fund has already accumulated 550 BTC at the moment. Total amount of bitcoins in this fund will be $150 million.
Curiously, the first 400 BTC were bought at a higher rate than the next 150 BTC. The head of El Salvador intends to continue to mandate the purchase of bitcoins, stating that the “discount” in the price of bitcoin, which occurred on September 7, is temporary and was caused, as he believes, by information about the negative attitude of the IMF to the U-turn towards bitcoin, which the country is implementing.
For El Salvador, the interest in bitcoin is multifaceted. For example, a local law passed by the parliament and approved by the head of El Salvador went into effect on September 7. This law introduces bitcoin to the commodity turnover of El Salvador, when the No. 1 cryptocurrency is given the same functionality as the U.S. dollar used for payments in this Central American country. In addition, this country’s authorities support the development of bitcoin mining.
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