El Salvador President Nayib Bukele spoke about the sinking Bitcoin exchange rate, according to him, the decline should not be a problem.
El Salvador under Bukele's leadership became the first country in the world to make bitcoin an accepted currency for payments with the US dollar, although the move was later criticized by the International Monetary Fund (IMF).
So far El Salvador has spent more than USD 100 million from its state budget to buy at least 2,300 bitcoins, with the average value of the coins being USD 46 thousand, as quoted by Newsweek, Tuesday (21/6/2022).
But the value of bitcoin owned by El Salvador has now fallen at least 50%, with a total value of around USD 44.6 million. The bitcoin exchange rate at the time of this writing was at USD 19,877, according to CoinMarketCap.
President Bukele also spoke about the decline. Through his Twitter account, Bukele also gives advice to bitcoin owners who are dizzy because the exchange rate has collapsed. According to him, investing in bitcoin is safe and will grow again in the near future.
"I see there are many people who are worried about the market price of bitcoin. My advice: stop looking at charts and enjoy life. If you invest in bitcoin then your investment is safe and its value will rise again. The key is patience," explained Bukele on the @nayibbukele account. .
Previously, El Salvador's Finance Minister Alejandro Zelaya dismissed the notion that the country's financial condition was problematic due to the declining bitcoin exchange rate.
The reason, according to Zelaya, El Salvador's investment is less than 0.5% of the state budget of El Salvador. So even if the value of their investment is reduced to USD 40 million, it is not a problem.
"When they say that the fiscal risk in El Salvador is very high due to bitcoin, the only thing I can do is smile," Zelaya explained.