El Salvador President Nayib Bukele recently told American stock broker Peter Schiff that if they converted their gold reserves to cryptocurrencies last year, they could hold a bitcoin worth $125 million and above.
El Salvador Realizes Plans About Gold Reserves
BEIJING, CHINA - DECEMBER 03: El Salvador President Nayib Bukele talks to China's President Xi Jinping at the Great Hall of the People on December 3, 2019 in Beijing, China
In a report by Bitcoin.com on Monday, Dec. 6, Bukele shared some interesting information about his past realizations on their gold reserves in the country. According to the 40-year-old leader, the nation could have made millions if it chose to switch reserves to bitcoin from gold.
Over Twitter, the president conversed with Schiff regarding it, and the latter questioned his recent action. Following the sharp dip of Bitcoin last Saturday, Dec. 4, Bukele said that El Salvador bought 100 BTC after its value plunged to below $44,000.
Schiff, on the other hand, questioned the Central American region's move of wasting taxpayers' money after buying cryptocurrencies.
In response to the comment of the radio personality, Bukele said that they are already in the "green" from their last transaction that took place less than 24 hours.
"You know boomer, we have 44,106 oz of gold in our reserves. Worth $79 million, down 0.37% from a year ago. If we had sold it a year ago and bought bitcoin, it would now be valued at $204 million," the Salvadoran president continued.
The same crypto news outlet wrote that Michael Saylor, the CEO of Microstrategy made a similar comment back in September. He said that if they switched over to gold rather than BTC, they could have made billions of dollars at that time.
The company purchased over 7,0002 BTC last month as it reaches its current holdings of 121,044 coins.
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Bitcoin Legal Tender
Following El Salvador's decision to make BTC a legal tender along with the US dollar, the International Monetary Fund (IMF) warned it about this issue. Utilizing bitcoin as an official currency in the country could affect the flow of the economy in the long run.
Apart from that, Andrew Bailey, the governor of the Bank of England also expressed the same sentiment with the IMF regarding including Bitcoin as a national currency in the country.
Environmental Effect of Crypto Implementation
Back in June, Tech Times reported that an opposition party in the country planned to sue Bukele after overlooking the impact of cryptocurrencies in the Salvadoran environment.
The plaintiff said at that time that the president did not consider the possible harm that it would bring to nature. Bukele asked the World Bank regarding his plans for BTC but the financial institution insisted on allowing it because of the environmental and transparency issues surrounding this digital coin.
In another report, we wrote that Bukele unveiled his plans to construct the first Bitcoin City in the world. The president saw this as an investment to bolster the economy of the nation. The city will be worth nearly 300,000 BTC, according to him.
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Written by Joseph Henry
