Economic analysis about the fact that he Salvador has paid 800 million dollars of debt with bitcoin bet
It is impressive how the Central American country was able to comply with the payment of 800 million dollars belonging to an external bond debt, this payment was made under the scenario of concern that the Salvadoran country could not comply with the payment, but thanks to the bet made by the Central American country in BTC it was able to comply with the payment.
Given the economic context that the Salvadoran country was going through, many assumed that due to the purchases that that the Salvadoran country had made in bitcoin it would not be able to pay its debt in January 2023, for this case, on the contrary the rise in bitcoin prices allowed it to pay the debt in full including interest.
For him Salvador is a moment in which it has been able to demonstrate how a country can be a pioneer in the adoption of cryptocurrencies, and that politically it has been able to demonstrate that although the debt was acquired in previous governments, its policy of adopting bitcoin allowed it to pay debts that are due for this time of so much social and economic upheaval.
Conclusion
The position of the Central American country is solid and sustained without hesitation, in which they have a vision of adopting reserves of value that in the future will have a strong adoption, such is the case of cryptocurrencies and its main reference the BTC, logically having as reserves such volatile reserves, many think that it will not be able to meet some debts, especially if we take into account that during the downward cycle that we were experiencing months ago these reserves were in losses.
In particular I think that such criticism is not well founded, since any reserve of value depreciates over time and also acquires value suddenly, such is the case of gold, sometimes its price goes down, and other times it increases, that is why they are considered reserves, to be used only when they are needed.
By the time global inflation increases and the adoption of cryptocurrencies and bitcoin increases, then many countries may want to be in the position of the Central American country, with bitcoin reserves, which may represent more significant reserves than other countries.
Hello @carlos84, a good investment has been made by the government of El Salvador in cryptocurrencies, tel is the point that I managed to pay off its debt and prove to the world that cryptos are an excellent financial alternative.
See you later, have a great week.
Hi friend @amestyj, it is certainly a demonstration by the Savior that if you can own cryptocurrency reserves. Greetings and thanks for commenting.