El Salvador continues its mission to buy one Bitcoin daily despite continued selling pressure as the crypto markets plummet. CoinMarketCap data indicated that Bitcoin is down to $57,557.72 at the time of writing, 4.26% lower in the past 24 hours. The coin’s market cap is also down by 4.18% in the past 24 hours. This price plunge is the lowest BTC has seen since April.
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The current crypto market crash has been pinned to the bearish sentiment around Mt. Gox’s repayment, which led to panic selling. Mt. Gox, a defunct Japanese crypto exchange, will begin repaying its creditors approximately $10 billion in BTC and BCH in the coming week. While multiple analysts suggest that this event will not strain the crypto markets, the bears have taken over, plunging various coins.
El Salvador’s president Nayib Bukele remains pro-Bitcoin amid the crypto market crises. In March, Nayib posted on X that the country would continue buying BTC until the coin became ‘unaffordable with fiat currencies.’ Later in the month, El Salvador’s president commented on the country’s bitcoin holdings, which were about 5,700 BTC.
Nayib also posted on X that he moved the country’s BTC holdings to a cold wallet as a safe option for storing the investment. At the time, the moved BTC amounted to over $400 million. El Salvador’s president published the wallet’s address on X the same day.
El Salvador explores a Bitcoin bank
In June, President Nayib Bukele suggested introducing a Bitcoin Bank in El Salvador to facilitate Bitcoin and USD transfers. His senior Bitcoin Advisor, Max Keiser, relayed the news on X, stating it as a groundbreaking move by Nayib Bukele two weeks into his second term.
President Bukele hits ground running in new term with new legislation establishing a #BITCOIN BANK in 🇸🇻
– Borrowers can collateralize their pristine, no counter party risk #Bitcoin
Billions of #Bitcoin will flood into El Salvador upping GDP
🇸🇻 credit rating hits IG within 24… https://t.co/1olq9OWy6k
— Max Keiser (@maxkeiser) June 14, 2024
Keiser commented on the plan as a doorway for investors to collateralize BTC with no counterparty risks. Max Keiser highlighted his idea of BTC as a reserve currency in 2019 despite many overlooking it.
“As predicted back in 2019 when I coined the the term ‘Global Hash War’ to describe nations switching from trying to ban #Bitcoin to hoarding BTC as a strategic reserve.”
Max mentioned that the country’s GDP will increase as billions in BTC flood El Salvador’s markets. Other factors, such as credit ratings, will also rise in approximately 24 months.
Argentina endorses BTC
On June 25, Argentina’s President Javier Milei supported BTC on X, encouraging currency competition. Milei mentioned that anyone wishing to use BTC can do so without issues. He added that businesses wanting to use other units, including WTI and BTU, could leverage the most appropriate ones.
Habrá libre competencia de monedas así es que si querés usar el Bitcoin no habrá problemas… y también podrás usar otras unidades como el WTI, BTU y la que te resulte más acorde en tu negocio…
Es más contablemente se resuelve por el método de moneda funcional…— Javier Milei (@JMilei) June 19, 2024
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Argentina is also forming strategic partnerships with El Salvador to initiate the adoption of BTC. Javier Milei, elected in November last year, promised to improve Argentina’s economy, with one option being joining the evolving crypto sector.
Cryptopolitan reporting by Collins J. Okoth
