[Bitcoin Now] El Salvador Government Buys the Dip as Price Plummets to 54 Million Won Range...

Purchased an Additional 150 Bitcoin... Estimated at Approximately 54.4 Million KRW Each

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] El Salvador, a Latin American country managed by CMS, adopted Bitcoin, the representative cryptocurrency, as legal tender, but its value plunged to around 55 million KRW. However, the El Salvador government has instead started buying Bitcoin at low prices.

According to the domestic cryptocurrency exchange Upbit, as of 2:58 PM on the 8th, Bitcoin recorded 54.81 million KRW, down 3.27% compared to the previous day. It showed a strong trend by rising to 61.11 million KRW at 12:27 PM the previous day, but it plunged more than 10% in just one day.

On the 7th (local time), El Salvador became the first country in the world to adopt Bitcoin as legal tender, but confusion has arisen. Cryptocurrency specialized media CoinDesk reported that the El Salvador government did not adequately explain Bitcoin to its citizens. Although the El Salvador government created the electronic wallet “Chivo” for Bitcoin remittances and prepared a bill to establish a fund worth 150 million USD (approximately 174.8 billion KRW) to support the exchange between Bitcoin and the dollar, citizens still have not fully understood Bitcoin.

Voices of opposition from the public are also growing. According to major foreign media on the 7th, about 1,000 citizens gathered in San Salvador, the capital of El Salvador, to protest against the adoption of Bitcoin as legal tender. The protesters argued that Bitcoin is easily used for criminal funds and has high volatility, making it unable to function as currency. According to a survey conducted by the Central American University of El Salvador on 1,281 citizens on the 2nd, 67.9% of respondents opposed the adoption of Bitcoin as legal tender.

However, the El Salvador government is participating more actively in the cryptocurrency market. On the 7th, President Nayib Bukele of El Salvador announced on Twitter that “an additional 150 Bitcoins were purchased at low prices.” The 150 Bitcoins purchased by the El Salvador government are worth a total of 7 million USD. This is estimated to be about 46,667 USD (approximately 54.4 million KRW) per coin.

This content was produced with the assistance of AI translation services.