El Salvador takes advantage of the fall and adds another 420 Bitcoins to its reserves
The government of El Salvador increased its Bitcoin reserves during the fall on Wednesday (27). According to Nayib Bukele, president of the country, the Central American nation has added another 420 BTC to its internal reserves.
“It was a long wait, but it’s worth it. We just bought 420 new Bitcoins at the low end and we are already profiting from what we just bought”, highlighted Bukele on twitter.
We have a trust fund accounted in USD, but the trust is funded by both USD and BTC.
When the BTC part revalues in comparison to the accounting currency (USD), we are able to withdraw some USD and leave the trust with the same total.
— Nayib Bukele 🇸🇻 (@nayibbukele) October 27, 2021
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As a result of the new purchase, the country reached the mark of 1,120 BTC accumulated over two months. This was the third purchase made by the Salvadoran government since the cryptocurrency was legally adopted in the country on September 7th.
On Wednesday, the price of BTC dropped more than 5% and lost the level of $60 thousand. However, the cryptocurrency returns to operate in high this Thursday (28), rising 4.2%. Therefore, the El Salvador operation may indeed be generating profits.
Based on the current price ($61,082), El Salvador’s reserves reached the value of $68.4 million.
According to Bukele, Ley Bitcoin was adopted with the aim of facilitating the remittance of funds to El Salvador. About 23% of Salvador’s GDP comes from funds sent by citizens of the country who live abroad.
Apparently, the measure has been successful in this regard. Data from the Public Policy Observatory at the Francisco Gavidia University indicate that the country’s GDP should grow by 8.5% in 2021. The high percentage will be impacted by the increase in exports and, above all, the receipt of remittances from abroad.