Salvadoran Finance Minister Alejandro Celaya said the current market crash would not hurt the country's financial condition, Reuters reported. The head of the department referred to a report that reflected the loss of the state in the amount of $40 million from investments in BTC.
The official noted that this amount is less than 0.5% of the country's total national budget, and the market crash did not increase the financial risks associated with investing in cryptocurrencies.
“When I am told that the financial risk to El Salvador from bitcoin is really high, the only thing I can do is smile. The fiscal risk is extremely small,” Zelaya said.
El Salvador is the first country in the world where bitcoin received the status of legal tender (along with the US dollar). On September 7, 2021, the corresponding law came into force in the country.
At that time, the BTC exchange rate was about $51 thousand, but since then it has fallen by almost 60%, to the current levels of $22 thousand on June 14, 2022.
In November 2021, the Salvadoran government announced plans for a Bitcoin city and has since bought over 2,301 BTC. The last acquisition took place in mid-May 2022 when the country spent $15.3 million to buy 500 BTC.