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El Salvador’s Bitcoin (BTC) experiment is on track and the results will not happen overnight, said the country’s finance minister, Alejandro Seraya. Bloomberg News In an interview.
Naysayers has long argued that Central American countries should reduce their losses and throw away Bitcoin. However, Zeraya argued that it was wrong to abandon the pursuit of financial innovation.
Bitcoin has fallen 54% from ATH since the fiat bill was passed on September 7, 2021.
Data from nayibtracker.com It has been shown that the government has acquired 2,381 BTC for $ 107,155,283. It has an average purchase price of $ 45,004 per token.
The current unrealized loss is $ 49.9 million, which is a tough drug to swallow, given that the government funded the purchase of tokens with public funds.
Bitcoin topped $ 24,000 for the first time in six weeks due to an unexpected mid-week rise against the backdrop of a 75 basis point rate hike in the United States. However, uncertainty is the dominant story against the backdrop of a deteriorating macroeconomic situation.
According to a survey by the Bureau of Economic Research, only 20% of respondents who downloaded Chivo Wallet continue to use it. Researchers have concluded that despite the fiat currency status, there is no evidence that BTC is widely used as a medium of exchange.
Despite the huge unrealized losses and the masses determined to stick to cash, Zeraya said, “You can’t lay the poor down and awaken the millionaire,” especially the plan is the nation-state financial system. If you’re confusing, it suggests that things will take time.
To that end, Zeraya likened the Bitcoin experiment to a common new technology. In that respect, the first response is always skeptical, but over time, new technologies will be accepted.
“New technologies show that people have been afraid of websites, digital businesses, etc. over the last few years, but over time it has been shown that reality imposes itself.”
Zeyala suggested that without diving into the details, it would be accepted when people realized that the new technology would benefit over the old way. He is confident that this scenario can also run Bitcoin as fiat currency.
“So it’s very important to make that transition, and I think it’s our mistake not to pursue financial innovation that could benefit El Salvador.”
