{"id":48676,"date":"2022-06-14T13:45:23","date_gmt":"2022-06-14T11:45:23","guid":{"rendered":"https:\/\/crypto-economy.com\/?p=48676"},"modified":"2022-06-14T13:45:23","modified_gmt":"2022-06-14T11:45:23","slug":"extremely-minimal-fiscal-risk-for-el-salvador-from-bitcoin-crash","status":"publish","type":"post","link":"https:\/\/crypto-economy.com\/extremely-minimal-fiscal-risk-for-el-salvador-from-bitcoin-crash\/","title":{"rendered":"‘Extremely Minimal’ Fiscal Risk for El Salvador from Bitcoin Crash"},"content":{"rendered":"
According to El Salvador’s finance minister, El Salvador suffers very little fiscal risk despite the crash of BTC. <\/strong><\/span><\/p>\n As a result of legalizing Bitcoin within its borders, the first nation to do so is sitting on a substantial unrealized loss amounting to billions of dollars. Yet, its Finance Minister, Alejandro Zelaya<\/strong>, assured the press that the nation’s fiscal situation wouldn’t be adversely affected by the recent market crash.<\/span><\/p>\n A bitcoin purchase has yet to be announced by the government of El Salvador. Despite the market crash, he spoke at a press conference, and the nation’s Finance Minister insisted to a reporter that the BTC adoption did not come with increased financial risks.<\/span><\/p>\n Zelaya noted that the amount represents less than 0.5% of the country’s national general budget, which is significant in light of estimates that El Salvador could have unrealized losses of $40 million on its BTC investment.<\/span><\/p>\n After the International Monetary Fund and credit agencies publicly criticized El Salvador’s decision last September to make bitcoin legal tender, alongside dollars, this was the first state to increase the value of bitcoin.<\/span><\/p>\nChallenges for Bitcoin Adoption<\/span><\/h2>\n