El Salvador was the first country in the world to elate Bitcoin as a legal tender last year in September. Since that time, the country’s government has continued to set a tradition of buying Bitcoin from the dip. However, recently the country’s national Bitcoin reserves are estimated to have run in deficit.
Because the real reserve amount has not been disclosed publically yet, the experts have presented a rough estimate. According to careful deliberations, the current deficit of the country falls between $10 million to $12 million. The decision of the Central American nation to adopt Bitcoin as a legal tender has been marked down as a trendsetter by several individuals.
El Salvador received a lot of praise and appreciation for making the bold choice of making Bitcoin a legal tender. However, there are several institutions and private financial enterprises that criticized the decision. IMF questioned the El Salvador government by calling it an interesting experiment and claiming that Bitcoin adoption can hinder the process of its future funding negotiations.
On the other hand, some other countries like Moody’s and S&P Global claimed recently that Bitcoin trading could affect their credit score negatively. On the other hand, the locals of the country have been reporting issues with their Chivo wallet accounts like identity theft and the disappearance of their Bitcoin reserves.
Financial giant and asset management firm Fidelity recently added that in case El Salvador manages to drive their Bitcoin adoption properly, it can be a game-changer for the world. Fidelity claimed that with the raving success story of El Salvador, many other nations would have to consider following suit. Fidelity also claimed that sovereign nations might want to add Bitcoin as insurance.
It is worth mentioning that President Bukele has claimed in the past there are at least two more countries that will add Bitcoin as a legal tender soon enough. He also claimed at one point that Bitcoin price evaluation would reach $100K before 2021 ends. At the time, the world is intent on looking at how the country manages to realize making volcanic energy plants and Chivo wallet security to the best of their abilities.