To the approval of the authorities, the price of bitcoin, the second legal tender in the country, exceeded 63 thousand dollars on Thursday, driven by the decrease in the US rate.
Diario El Salvador reported that the FED opted for a strong reduction of half a percentage point in a range of 4.75 to 5.00 percent, which paves the way to reduce borrowing costs in all areas, from mortgages to credit cards.
It is important to remember that as this cryptocurrency is a deflationary asset, whose issuance (supply) is limited, any increase in demand has an impact on the price, thus impacting El Salvador’s reserve of the “token”, the newspaper said.
Moreover, it is important to mention that Bukele’s administration continues with the purchase operation of one asset per day and maintains its intention to continue with it in the coming months.
The government’s fight against the economic challenges has had encouraging results in recent days when, for example, the country’s bonds have risen for three days after the president’s announcement to present a budget without deficit.
Official reports indicate that El Salvador’s bond maturing in 2034 continues to rise in international markets after the announcement, which anticipates better days for the country, at a time when it is still negotiating credits with the International Monetary Fund (IMF).
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