With the world still being uncertain of cryptos, El Salvador’s Finance Minister has expressed his belief in the country’s decision to adopt Bitcoin as legal tender. He has unwaveringly defended Bitcoin even as the crypto market continues to crash and suffer.
As per report, Alejandro Zelaya said that cryptocurrencies have attracted several financial services to a country that has a largely unbanked population. Cryptocurrencies have attracted both tourism and investments.
He also mentioned that although the use of cryptos as a means of exchange is low, he continues to believe in digital money. He further added that the government is still looking forward to issuing a Bitcoin-backed bond through blockchain technology.
Zelaya further commented that for some, cryptos are a novel concept but it’s a ‘phenomenon that exists and is gaining ground and will continue to be around in the coming years’.
El Salvador has reportedly bought 2,381 Bitcoin with public funds, which as per today’s market price, is worth 50% less than what authorities paid for them.
A recent survey from the U.S. National Bureau of Economic Research reported that many businesses and even users in El Salvador still prefer to use hard currency to pay for services and remittances.
The International Monetary Fund (IMF) has urged the nation to strip Bitcoin of its legitimacy. However the organization is also providing technical support to El Salvador for compiling statistics about the use of Bitcoin.
Zelaya, however, also said, “We aren’t going to have results overnight. We can’t go to bed poor and wake up millionaires.”
Moreover, he revealed that Bitcoin’s crash has slowed down the administration’s plans to issue a $1 billion Bitcoin-backed bond. However, the government is not losing hopes and wants to move forward with the sale as the market bounces back.
The government is also in no mood to give up on its plan to build “Bitcoin City” and will announce other Bitcoin-related projects in the future.
Zelaya further commented, “I believe in the traditional, international monetary system just as I believe that new technologies are going to help human beings in the future.”