El Salvador buys 100 extra bitcoins to take advantage of the depreciation of the cryptocurrency

The president of The Savior, a pioneer country in adopting bitcoin as legal tender, it announced on Friday a new purchase of 100 cryptocurrencies, taking advantage of the recent drop in their price against the dollar.

The bitcoin it dropped 7.8% to $ 54,377 on Friday, the lowest since Oct. 12. The unit was heading for its biggest one-day drop since Sept. 20, down more than 20% since hitting a record high of $ 69,000 earlier this month.

The Savior just bought on sale. 100 extra bitcoins with a discount, “said the president Nayib B Watch in an English message on his Twitter account. As of October 28, the country had bought 1,120 bitcoins.

At the proposal of the ruler, the Congress, with a pro-government majority, in September converted the central american nation in the first to allow the official circulation of the cryptoactive, in parallel to the US dollar, arousing the suspicion of international markets and organizations.

The International Monetary Fund (IMF), which negotiates a financing agreement for 1.3 billion dollars with The Savior, reported Monday that it has recommended to local authorities not to use the bitcoin as legal tender due to the high risks involved and suggested greater controls in the implementation of the policy.

Despite the doubts generated by the initiative, Watch announced on Saturday a plan to build the first “Bitcoin City“, initially funded with cryptocurrency-backed bonds.



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