Why Is El Salvador Buying The Crypto Dip?

The shift to cryptocurrency was justified by dictator-President Nayib Bukele by citing the need for financial inclusion for Salvadorians, who did not have any way to access the financial system.

El Salvador’s President Nayib Bukele bought the dip, and added 410 bitcoins to the country’s treasury at a cost of $ 15 million recently.

It is reported that El Salvador owns Bitcoin worth $ 66 million in total, amounting to 1,800 bitcoins. The President, who describes himself as the “CEO of El Salvador” and the “world’s coolest dictator” on Twitter, had announced the conversion of Bitcoin into legal tender for the country.

The country ,however, remains highly indebted, with the total debt amounting to almost 50 per cent of Gross Domestic Product.

The investor jitteriness is visible from a high yield on the country’s bonds that have been on the rise since the conversion of Bitcoin to legal tender.