El Salvador’s Bukele Tells Citizens Concerned About Bitcoin: Go ‘Enjoy Life’

El Salvador’s Bukele Tells Citizens Concerned About Bitcoin: Go ‘Enjoy Life’

El Salvador’s Bukele Tells Citizens Concerned About Bitcoin: Go ‘Enjoy Life’

El Salvador’s president Nayib Bukele told his voters on Saturday night to stop worrying about the price of bitcoin and “enjoy life”. At Bukele’s urging, El Salvador became the first country to accept bitcoin as legal tender in June 2021.

On Sunday, as bitcoin’s value fell to less than half of what Bukele’s government paid when it bought $105 million of it last year, Bukele appealed to the public for calm and patience:

“I see that some people are worried or anxious about the Bitcoin market price. My advice: stop looking at the chart and enjoy life,” Bukele wrote on Twitter.

“If you have invested in Bitcoin, your investment is safe and its value will grow tremendously after the bear market. Patience is the key,” he says.

Salvadoran Finance Minister Alejandro Zelaya said his government “has suffered no losses” from the bitcoin collapse. He insisted that the financial risk of El Salvador’s embrace of the cryptocurrency is “extremely minimal”. Like Bukele, Zelaya anticipated a bitcoin rally in the future.

The International Monetary Fund (IMF) did not share Bukele and Zelaya’s optimism, because warned In early 2022, the use of bitcoin as legal tender exposed the Salvadoran treasury to “major risks” that could threaten “financial stability, financial integrity and consumer protection.”

The government of Bukele angry rejected criticized the IMF and dismissed it as an attack on El Salvador’s sovereignty.

“No international organization will make us do anything, nothing at all,” Zelaya snapped in January.

Bukele himself reacted sarcastic “OK boomers” when a bipartisan group of US senators introduced legislation in February to “reduce potential risks to the US financial system” by protecting it from El Salvador’s bitcoin.

“You have zero jurisdiction over a sovereign and independent nation. We are not your colony, your backyard or your front yard. Stay away from our internal affairs,” he told the Senate group.

When Bitcoin’s Value Started Crashing In May, Bukele Was Proud announced his government had “bought the dip” by buying another 500 bitcoin for $15.3 million. Bitcoin was worth $30,744 at the time. On Monday, it was trading at $19,965.

Business professor Julio Sevilla from the University of Georgia said: NPR on Sunday that since bitcoin only accounts for about four percent of El Salvador’s reserves, a crypto crash is unlikely to topple the government, and as Bukele remains highly popular with his constituents, his plea for patience from the public will likely to be granted.

On the other hand, Sevilla thought Bukele might regret burning so many bridges with his combative defense of his bitcoin initiative.

“El Salvador is heavily in debt and the president has attempted to negotiate with the International Monetary Fund to secure this funding. But they have said they are concerned about how the country is generally run with the fact that the president, you know, has no control over the Supreme Court and that he is carrying out these bizarre initiatives,” Seville said.