A HODL no matter what? – All crypto-enthusiasts find themselves thrown into the turmoil of the spectacular explosion of FTX. In addition to individual players and private companies, a country is also involved in the case: the salvador. Indeed, since Bitcoin has become a legal tender currencythe Central American nation owns a portion of its Treasury reserves in BTC.
-60% on the value of its bitcoins? ” Not even afraid “
Since the President of El Salvador, Nayib Bukeleand his government have makes the banks bend for the adoption of Bitcoin as national currency (as of September 2021), BTC has been regularly purchased by the Salvadoran Treasury.
As shown below in the summary table of these purchases, taken from a Bloomberg publication, El Salvador currently has a total of 2,381 bitcoins. As of this writing, these BTCs represent approximately 41 million of dollars.
However, the purchase price of all these bitcoins would amount to 105 million of dollars. The loss in value would therefore be of the order of -60% for these crypto-assets. But this doesn’t seem to worry Salvadoran representatives, as we will see.
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El Salvador opts for the HODL strategy (long-term conservation)
The sign of great composure from the Salvadoran authorities on their choice for Bitcoin comes to us from the Minister of Finances. During an interview, Alejandro Zelaya firmly signaled that the country “didn’t sell any of his bitcoins”and therefore realized no loss.
Moreover, the current gloom in the crypto market, following the FTX disaster, has not no impact on El Salvador. Nor on its policy of adopting Bitcoin as a currency, according to the political leader.
“It’s not going to affect us. We haven’t sold any of our possessions [en BTC]. (…) You cannot realize a loss until you sell. No financial decision maker would make the decision to sell when things are going badly. »
Alejandro Zelaya, Minister of Finance of El Salvador
Fortunately, during a private exchange between the CEO of Binance (Changpeng Zhao) and President Bukele, the latter clarified that the country does not held none of his bitcoins with FTXcontrary to what one false rumor. BTCs from El Salvador seem to be here to stay.
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