El Salvador “has not had losses” due to falls in bitcoin, says minister

The Savior “no losses” due to falls in the price of Bitcoin Finance Minister Alejandro Zelaya said on Monday, who also pointed out that the fiscal risk due to the implementation of the cryptoactive as a payment currency together with the US dollar is “extremely minimal”.

The Bitcoin the best-known cryptocurrency in the market, extends the falls this Monday, and has plummeted almost 15% this afternoon to its lowest since December 2020. According to data from Bloomberg consulted by GLM, the Bitcoin which started the session with losses of more than 7%, has been accentuating the fall throughout the day.

In this context, the head of the Treasury was asked today during a press conference about the government’s reaction to this new fall.

“There is a lot of fuss lately with our strategy Bitcoin”Zelaya responded to a question from a journalist from a local television outlet.

According to the official, The Savior “He has not had any losses.” because he has not sold the coins.

Between September 6, 2021 and last May 9, The Savior has accumulated 2,301 bitcoins for more than 100 million dollars.

Investments in 10 purchases announced by the president Nayib Bukele and of which no information is provided beyond the president’s tweets, range between 30,700 and 58,000 dollars.

“I have said repeatedly, an alleged loss of 40 million dollars has not occurred because we have not sold the coins”, Zelaya noted.

The minister took the opportunity to criticize a publication by the international chain Deutsche Welle (DW) in which, according to Zelaya, it is ensured that The Savior “it is being dragged down by a fiscal risk of 40 million dollars”.

“There is a clear criticism of Bitcoin as such, not to the strategy of The Savior. The Savior It is what interests them the least, they (the media) are not interested in what happens to our economy, they are not interested in what happens to our people, what happens with inflation”said.

And he added: “When they say that the fiscal risk in The Savior for him Bitcoin it is very high, the only thing it does is make me laugh and I think that any serious economist should do the same, because it really is an extremely superficial analysis and they speak only from ignorance”.

“The fiscal risk is extremely minimal” he underlined.

The International Monetary Fund (IMF), an entity with which the Government of Watch negotiated an agreement for up to 1,400 million, urged the country to limit the scope of the law Bitcoin eliminating its status as legal tender” and also expressed his “concern” for the issuance of cryptocurrency-backed bonds.

The risk rating agencies have pointed out the growing need for financing that the Salvadoran Government will have, which in 2023 must pay 800 million dollars of Eurobonds.