El Salvador Increases Bitcoin Position

El Salvador has upped its investment in bitcoin (BTC) following a 5% last week. The country, the first to make BTC a legal tender, took advantage of the fall to increase its position. El Salvador President Nayib Bukele, on Twitter, said the country has bought an additional 150 BTC worth $6.8 million.

President Advises Buying the Dip

That brings El Salvador’s holding to 700 BTC, just two weeks after starting to buy. Interestingly, the President advised people that they should buy during dips, rather than worrying about the price fall. In June, El Salvador passed the Bitcoin bill, making BTC legal tender from September 12. This prompted warnings from, among others, the World Bank and IMF that there could be disastrous economic impact.

They also refused to help the country in the technical integration of BTC as legal tender and several rating agencies, like Fitch and Moody’s, downgraded Salvador’s credit rating. In El Salvador the move prompted protests, some violent.

Could Other Countries Follow?

Yet the President maintains most of the population support the move and use BTC for daily needs. He also pointed to the success of the official bitcoin wallet app, Chivo, which was downloaded more than 500,000 times in two weeks. Other countries could follow the lead of El Salvador, with Cuba and Panama among those looking at bitcoin to assist in economic revival.