“Fiscal risk is extremely minimal”. Finance Minister of El Salvador speaking about the fall of BTC

According to Reuters, a severe collapse of BTC will not harm the country’s financial system. At his press conference, the minister emphasized that statements about the high fiscal risk for El Salvador because of Bitcoin make him smile. 

“A fiscal risk is extremely minimal.

said Alejandro Zelaya.

To quote the minister, according to the assessment of Deutsche Welle, the country’s cryptocurrency portfolio lost about $40 million in value. However, this amount does not exceed 0.5% of the budget of El Salvador, which means that the inhabitants of the country have nothing to worry about.

El Salvador is the first country in the world to recognize Bitcoin as an official means of payment and allow it to be used alongside the US dollar. Since September 2021, the number of BTC in the country’s cryptocurrency portfolio has reached 2301 units while losing about 50% in value.

Despite the support of crypto enthusiasts, the President of El Salvador, Nayib Bukele, regularly encounters resistance and disapproval from major international financial institutions and residents. As the survey conducted among Salvadorans demonstrated, more than 70% of respondents remain strongly committed to the USD. At the same time, the acquisition of BTC to the state balance is among the three critical mistakes of the current president, according to respondents.