Bitcoin plummets, El Salvador’s president restocks and has lost HK$160 million so far – Hong Kong

El Salvador, the only small Central American country that uses the virtual currency Bitcoin as legal tender, has purchased at least 1,391 pieces, but Bitcoin has been under pressure recently. As of last Friday (21st), the book has lost about 20 million US dollars (about 160 million Hong Kong dollars).

In June last year, El Salvador’s Congress passed a proposal by President Nayib Bukele to make bitcoin legal tender, and on September 7 last year, it officially became the first country in the world to adopt bitcoin. The exchange rate of Bitcoin, like the US dollar, is freely determined by the market. The bill also states that Bitcoin can be used for activities such as tax payment, and transactions are not restricted or subject to capital gains tax.

Bitcoin has continued to fall in recent days, causing a 25% loss on the Bitcoin purchased by El Salvador on Friday (21st), but President Bukele still posted on Twitter on the 22nd that he would spend another 15 million US dollars (about 120 million Hong Kong dollars). ) to buy 410 bitcoins, bringing the total holdings to 1500. But all bitcoins purchased by El Salvador have suffered serious losses, with a loss of US$20 million (about HK$160 million).

Citizens skeptical of the president’s continued purchases of bitcoin say it could increase regulatory and financial risks in the country, while polls show El Salvadorans are wary of the cryptocurrency’s volatility. Another joked that the country would soon become the first country to become a “Fourth World” due to the wrong timing of Bukele’s arrival.

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