The President of El Salvador, Nayib Bukele, announced on Twitter that the government purchased an additional 150 Bitcoin (BTC). This was done on the drawdown of the rate of the first cryptocurrency to $45,000.
In summary, 700 BTC is held in the country’s bitcoin fund. On the day of the entry into force of the law on the legalization of the first cryptocurrency. On September 7, the government purchased 550 BTC.
Bukele also recommended buying Bitcoin on the fall of the exchange rate and called it “the president’s advice”.
205 Bitcoin ATMs
According to Coin ATM Radar, El Salvador ranked third in the world ranking in terms of the number of Bitcoin ATMs. The first two places belong to the United States and Canada.
Thus, in the country that legalized the first cryptocurrency, the authorities installed 205 Bitcoin ATMs.
Recall that residents of the capital of El Salvador burned a Bitcoin ATM during demonstrations against the recognition of digital gold as a legal means of payment. According to the protesters, Bukele concentrated too much power in his hands, weakening the independence of the courts.
Sales of the country’s government bonds
Earlier, the legalization of the first cryptocurrency led to sales of the country’s government bonds. The yield of issues of government bonds of El Salvador with the nearest maturities exceeded the indicators of securities for which it comes later. The inverted nature of the government bond curve indicates the risks of a recession and the country’s problems with servicing its obligations.
Changes in the public debt market of El Salvador began in June. After the adoption by the Legislative Assembly of the country of a bill on the legalization of Bitcoin.
“El Salvador slipped on the first day of the new Bitcoin law. The situation on the public debt market is a sign that the widespread use of the first cryptocurrency can have serious consequences for the country,” commented Ben Emons, strategist at Medley Global Advisors.