Despite global agencies’ warnings about El Salvador’s embrace of Bitcoin (BTC), the government continues to grab the business opportunity.
On Monday morning, as the price of Bitcoin plummeted below $46,000, Salvadoran President Nayib Bukele stated on Twitter that the country had “bought the dip.”
With the addition of 150 new coins, the Central American government now has 700 BTC, worth over $32 million at the time of writing.
El Salvador’s march toward acceptance piqued the interest of the crypto community, especially with the possibility of a tax break for Bitcoin investors.
However, the government’s decision to accept Bitcoin as legal cash is not without complications.
Aside from protests and marches against the government’s adoption of Bitcoin, credit rating agency Standard and Poor’s Global stated that the action “has immediate negative repercussions” for the country’s credit rating.
S&P also claimed that the decision would jeopardize El Salvador’s chances of obtaining a $1 billion loan from the International Monetary Fund.
On September 7, El Salvador became the first government to recognize Bitcoin as legal money.
The government had 400 BTC at the time. El Salvador increased its Bitcoin holdings to 700 BTC by taking advantage of two price drops in two weeks and bought 150 coins each time.