El Salvador Buys the Dip Once Again
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El Salvador Buys the Dip Once Again

6mo ago

A number of central banks — along with the International Monetary Fund — have been highly critical of El Salvador deciding to make BTC legal tender.

El Salvador Buys the Dip Once Again

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El Salvador has bought the dip once again — purchasing 100 BTC to hold in reserve.

The investment was announced by President Nayib Bukele on Friday.

Bitcoin's price plunged sharply last week — hitting lows of $53,576.74 — amid concerns over the new coronavirus variant.
As a result, the Central American country now holds 1,200 BTC.

El Salvador embraced Bitcoin as legal tender in September. Some of the profits from its investment have already been devoted to building new schools and a pet hospital. Earlier this month, Bukele also declared that he plans to build "Bitcoin City" — a metropolis powered by a volcano where everything would be devoted to the world's biggest cryptocurrency.

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Teasing the Bank of England

As reported by CoinMarketCap Alexandria last week, a number of central banks — along with the International Monetary Fund — have been highly critical of El Salvador deciding to make BTC legal tender.

Among them is Andrew Bailey of the Bank of England, who questioned whether Salvadoran consumers "understand the nature and volatility of the currency they have."

Bukele wasted little time in responding to Bailey's comments, tweeting: 

"I'm really concerned about @bankofengland printing money out of thin air."

This is a nod to claims that quantitative easing, which has been used to stimulate economies affected by the coronavirus pandemic, devalues the fiat currency already in circulation — contributing to inflation.

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