El Salvador Buys $25 Million Bitcoin – Trustnodes

El Salvador Buys $25 Million Bitcoin

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El Salvador presiident

El Salvador has become the first country in the world to buy bitcoin at a state level with its president, Nayib Bukele, stating he bought the dip.

“Buying the dip, 150 new coins added,” Bukele said. “It appears the discount is ending… We saved a million in printed paper. El Salvador now holds 550 bitcoin.”

The crypto currency has now become official legal tender in the country, with bitcoin being actual money in El Salvador, backed by the government so to speak as it is buying dips.

That may put pressure on other governments to hedge their bets, especially if they don’t print their own money, but instead either peg it or outright adopt the dollar or the euro.

Countries that do print their money may also have to consider whether they should add bitcoin to their gold reserves especially if the appreciation in bitcoin prices adds inter-country competitive elements.

It may well be in their interest, however, to do so covertly at this stage so that they do not risk setting off a race between governments to upgrade their own money reserves.

Thus it is not known at this stage whether they are diversifying. We suspect, without concrete basis, that Russia and Iran may be doing so. Where the US government is concerned, it appears clear they or some elements within the government are holding bitcoin because they’re offering to pay with it. While Germany in particular is setting itself apart by having no capital gains on crypto.

So marking a new stage of adoption as El Salvador dives in with all very keen to see whether they will swim or sink.

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