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17 Nov, 2022 13:54

El Salvador doubles down on Bitcoin

The Central American country will start buying one crypto coin per day, according to its president
El Salvador doubles down on Bitcoin

The cryptocurrency industry’s turmoil, triggered by the FTX exchange collapse, has not dented the enthusiasm of El Salvadoran President Nayib Bukele towards Bitcoin. He announced on Wednesday that the nation will start purchasing the token on a daily basis starting from November 17.

The announcement comes nearly three months after the nation made its last purchase in July 2022. According to public records, cited by Cointelegraph, El Salvador currently holds 2,381 BTC at an average buying price of $43,357. This means the country has spent nearly $103.23 million on Bitcoin purchases, while the value currently sits at $39.4 million, the outlet reports.

“El Salvador’s BTC adoption might not look very promising at the moment due to the intense crypto winter,” Cointelegraph wrote. “However, looking at the Bitcoin price cycle history, the nation can easily offset its losses in the next bull cycle by simply holding onto its BTC purchase.”

El Salvador started buying Bitcoin in September 2021 after making it legal tender. At the time, the digital currency was in the midst of a bull market.

The country was reportedly briefly involved with the ongoing FTX saga, with rumors circulating that it had its holdings on the exchange. However, Bukele denied these reports shortly afterwards in a conversation with Binance CEO Changpeng Zhao.

Bitcoin edged lower on Thursday to trade at $16,451 per token. It has lost three-quarters of its value in one year.

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