El Salvador’s Finance Minister Alejandro Zelaya dismissed concerns that a sharp fall in the value of Bitcoin (BTC) would affect the country’s fiscal situation.
At a press conference held on Monday, Zelaya calmly said that the risk of a bitcoin price drop on the country’s fiscal was very minimal after some expressed concerns about it.
In addition, Zelaya also mentioned about estimates from Deutsche Welles earlier which estimated that the country’s bitcoin portfolio had lost about $ 40 million in value.
According to him, the loss of such forty million dollars does not represent 0.5% of the general state budget, so it is not their concern.
At the time of writing BTC is trading weak at around $ 21,900 after declining more than 50% to hit its lowest level since December 2020.
The El Salvador government has bought 2,301 units of BTC since it announced to recognize the world’s largest cryptocurrency as a legal tender last September.
President Nayib Bukele has made it a habit to ‘buy the dip’ to increase holdings of the crypto assets. As of May this year, the country’s bitcoin reserves totaled about $ 71.4 million.
