President of El Salvador Nayib Bukele announced that the country purchased over $15.5 million worth of BTC during the recent price decline. El Salvador therefore added 500 BTC to its reserves, purchased at an average value of $30,744.

Bitcoin in the spotlight in El Salvador

El Salvador made its biggest purchase of BTC this May since its first investment last September, taking advantage of the fall in the price of the cryptocurrency. Bitcoin has, in fact, lost almost 55% of its value since its ATH in November 2021. This is not the first catch of the country which today holds 2301 BTC for a current value of around 72 million. of dollars.

The Salvadoran President’s enthusiasm for cryptocurrency does not stop there. Last September, the Ley Bitcoin was enacted and established the cryptocurrency as a national currency alongside the US dollar. Since then, El Salvador has been buying BTC regularly, almost never missing the opportunity to “buy the dip”.

In addition, President Bukele had presented, last November, an unprecedented futuristic city project called “Bitcoin City”. This will be located not far from the Conchagua volcano which will supply the city with electricity but will also support the resources necessary for Bitcoin mining . The first models of this unique city were unveiled by President Bukele on Tuesday on Twitter.

An enthusiasm that is not unanimous

Nayib Bukele has chosen to stake his political future on the success of the integration of Bitcoin in the country. If his enthusiasm is shared by many of his compatriots, others, on the other hand, display the greatest skepticism in the face of his undertakings. The widespread adoption of Bitcoin is indeed coming up against a growing number of detractors since today, 75% of the Salvadoran population says they are skeptical of cryptocurrency . In September 2021, seven out of ten citizens of El Salvador voted to repeal the Bitcoin Ley .

The International Monetary Fund (IMF), meanwhile, urged the country to abandon the same law in a report published in January. In the latter, the IMF points out that the adoption of cryptocurrencies involved “significant risks for the integrity of finances and markets, financial stability and consumer protection”.

Whether it is an unfounded institutional reluctance or a warning to be taken with the utmost seriousness, BTC could have a bright future in this Central American country. President Bukele, very favorable to the integration of cryptocurrencies in the national economy, has indeed been granted, by the Supreme Court of El Salvador, the authorization to run for a second term of 5 years in 2024.

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