Alejandro Zelaya, the finance minister of El Salvador, recognized that the adoption of bitcoin has helped the country’s unbanked citizens. Despite protests from critics, Alejandro supported the nation’s intention to adopt Bitcoin as its official currency.
In an interview with Bloomberg, Alejandro Zelaya stated that the use of Bitcoin as a legal currency had enabled a substantial section of the unbanked population to have access to financial services. According to him, it has also increased tourism and attracted foreign investment.
Moreover, he continues to believe in it despite the fact that it is not employed as a medium of exchange. He said that the government still aims to issue a Bitcoin-backed bond leveraging blockchain technology.
Finance Minister of El Salvador Defends BTC Adoption
According to calculations derived from the tweets of El Salvador’s president, Nayib Bukele, the government purchased 2,381 Bitcoin with taxpayer funds, which are now worth nearly half of what the government paid for them. According to a survey conducted by the United States National Bureau of Economic Analysis, the majority of firms and customers in El Salvador continue to make purchases and send remittances in hard currency.
Traditional banking institutions in El Salvador have decried the use of cryptocurrencies, and the International Monetary Fund (IMF) compelled the country to stop accepting bitcoin as legal cash in January.
Bitcoin-Related Initiatives Continue to Develop
The government continues to market bitcoin-backed bonds, according to Bloomberg. Former Honduran President Manuel Zelaya anticipated that this may occur when market conditions improved. He agreed that additional incentives would be implemented shortly and that ideas for “Bitcoin City” were still in the works. Former Honduran President Manuel Zelaya said, “We will not see immediate results.” Buyers must be affected individuals. In addition to believing that “new technologies will serve people in the future,” Zelaya stated that he supports the standard, multinational economic system.
Government of El Salvador Continues to Purchase Bitcoin
The legal tender regulations were passed on September 7, 2021. In contrast, Bitcoin’s value has decreased by 54% since then. Under the assumption that the federal government purchased the tokens using taxpayer dollars, the federal government’s current unrealized losses are $49.9 million.
Nonetheless, the El Salvador government purchased 2,381 bitcoins using public cash, which are now worth about half of what the government paid for them. The majority of these conclusions are based on President Nayib Bukele’s tweets.
Bitcoin Technical Perspectives
BTC had an outstanding week, but on Tuesday it confirmed a modest bearish drop. Bitcoin is trading below the $23,000 threshold, with immediate support at $21,750. If Bitcoin falls below this threshold, it may fall as low as $20,990. The RSI and MACD indicators are bullishly aligned.
The 50% Fibonacci level is a sturdy resistance level at $24,750. Many anticipated a bitcoin sell-off after two quarters of negative GDP in the United States, but this has yet to materialise.
A break above $24,750 might expose BTC to the 61.8% Fibonacci retracement level at $26,650. Priority needed!
