The adoption of Bitcoin as legal tender in El Salvador seems to be working for the unbanked population in the nation, according to the country’s financial minister Alejandro Zelaya.

Since it started accumulating Bitcoin, the Salvadoran government has incurred over 50% in losses. However, in spite of this, the country’s adoption of the cryptocurrency is reportedly working to benefit the population that is largely unbanked as well as attract international tourism and fresh investment.

In an interview with Bloomberg, Zelaya commented that the benefits are future-focused and that the current bear market will not have a permanent impact on the country’s decision to add Bitcoin as legal tender.

“For some, it’s something new and something they don’t entirely understand, but it’s a phenomenon that exists and is gaining ground and will continue to be around in the coming years”

How much Bitcoin does El Salvador own?

Over the course of the last ten months, El Salvador has purchased a total of 2,301 Bitcoin at $103.9 million. At the beginning of July 2021, this amount has declined in value by more than 55% to a valuation of only $44.6 million. While the bear market isn’t as low as it was at the beginning of the month, the initial investment from the country’s government is still looking at less than half its value.

With the volatile price of cryptocurrency as well as the novelty of the emerging technology, El Salvador has had a fair share of criticism at the decision to adopt of Bitcoin as legal tender. At the beginning of 2021, the International Monetary Fund (IMF) issued a warning about the legal status of the cryptocurrency – encouraging El Salvador to reconsider.
Zelaya commented on this, pointing out the prospect of innovative technologies:
“New technologies have shown how people in previous years were afraid of things like websites and digital business, but it’s been show through time that reality imposes itself.”