TL;DR Breakdown
- El Salvador buys 410 more BTC in the dip.
- Bukele reiterates commitment to keep buying BTC in the dip.
- Country set to begin giving crypto loan to small businesses.
El Salvador has bought 410 Bitcoin (BTC) to its central reserve in its latest attempt to buy the dip as the flagship cryptocurrency dipped below the $40,000 support zone to a six-month low below $35,000.
This announcement was made by no other than the President of El Salvador, Nayib Bukele. He took to Twitter to confirm the purchase of 410 BTC was made against $15 million, placing the price at approximately $36,585 per BTC.
His tweet reads, “Nope, I was wrong, didn’t miss it. El Salvador just bought 410 #bitcoin for only 15 million dollars. Some guys are selling really cheap.”
El Salvador adopts a ‘buy the dip’ strategy when it comes to accumulating Bitcoin. Anytime there is a fall in the price of Bitcoin, the President announces the accumulation of more Bitcoin into the nation’s reserve.
The latest purchase is currently the cheapest acquisition for El Salvador ever since the country adopted BTC as a legal tender.
Although their total investment was worth $10 million less at the start of January, president Bukele said he was concerned that the country failed to purchase more BTC during the recent market crashes. He made the comment after BTC dropped to $40,000 but bounced off immediately to around $44,000.
However, the cryptocurrency went on the downhill again in the past few days, losing nearly $9,000 in two days. This has allowed El Salvador to make one of its largest purchases to date, as announced by Bukele. Overall, the country purchased 410 BTC worth roughly $15 million.
El Salvador Plans to Offer Crypto Loans to Small-Scale Entrepreneurs
After the Central American country adopted BTC, it has continued to introduce scores of crypto products and offers to locals.
Recently, the government said it would offer cryptocurrency-based loans to small companies. Conamype, the National Commission for Micro and Small Enterprises, will be the link between the investors and a decentralized finance protocol called Acumen that will be able to provide funding in stablecoins. The aim is to help small investors with no credit history in the country.
According to Paul Steiner, President of Conamype, and Mónica Taher, the loans would be the lowest in the market depending on the risk of each analyzed project — more so if the only choice is to borrow money from loan sharks.
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