El Salvador's Fiscal Risk Is Extremely Minimal Despite BTC's Crash, Says Finance Minister

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The country has not purchased any bitcoin during the most recent market pullback, unlike on previous occasions.

This time, though, the situation seems a bit different. BTC plummeted hard in the past week or so, losing almost $10,000 in the process to a multi-year low of $20,800 tapped earlier today.at a press conference that the market crash has not increased the financial risks of the BTC adoption.

“When they tell me that the fiscal risk for El Salvador because of Bitcoin is really high, the only thing I can do is smile. The fiscal risk is extremely minimal.” In light of recent estimations saying El Salvador has an unrealized loss of $40 million in its BTC investments, Zelaya noted that this amount represents less than 0.5% of the country’s national general budget.While El Salvador’s unrealized BTC loss is a more modest $40 million, MicroStrategy’s position is substantially more harmful. The business intelligence giant, the largest corporate bitcoin holder, sits on an unrealized loss of around $1 billion on its BTC position.

Nevertheless, the firm’s CEO and founder is still bullish on BTC, refuting any assumptions that MicroStrategy will sell any of its bitcoins.

 

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