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El Salvador's Bitcoin investment suffers amid crypto meltdown

Author
CNN,
Publish Date
Wed, 15 Jun 2022, 1:49pm
El Salvador's President Nayib Bukele. His country voted to become the first nation in the world to adopt bitcoin as legal tender. (Photo / AP)
El Salvador's President Nayib Bukele. His country voted to become the first nation in the world to adopt bitcoin as legal tender. (Photo / AP)

El Salvador's Bitcoin investment suffers amid crypto meltdown

Author
CNN,
Publish Date
Wed, 15 Jun 2022, 1:49pm

El Salvador has embraced Bitcoin like no other country, with the government purchasing hundreds of coins last year as it announced that the cryptocurrency would become legal tender.

But as the cryptocurrency market cools off, El Salvador's investment is rapidly losing value, to the tune of at least USD$50 million.

Since September 2021, the El Salvador government led by President Nayib Bukele has amassed 2,301 bitcoins that were worth USD$103 million. Now, they are worth around USD$51 million.

The wider crypto market, which grew rapidly during the pandemic, has taken a tumble in recent months. On Monday, the value of Bitcoin fell below USD$24,000, marking its lowest level since December 2020.

Nevertheless, Bukele on Tuesday suggested his enthusiasm for the cryptocurrency had not waned.

Reacting to a reported comment from El Salvador's finance minister that the drop represented only a small percentage of their national budget, Bukele tweeted, "You're telling me we should buy more #BTC?"

- Philip Wang and Tara Subramaniam, CNN