1 sat \ 1 reply \ @0xIlmari 10 Mar \ on: El Salvador is a huge honeypot for future presidents (criminals) meta
This does not answer your question, but the reason the government of El Salvador bought Bitcoin in the first place is not as an investment or savings. This is such a paltry amount for a country-sized entity, even a small country like El Salvador.
The Bitcoin Law stipulates that a dual-currency system exists and both parties to a transaction (buyer and seller) can independently choose to pay/accept Bitcoin or USD.
The government is required by law to facilitate any conversions that may be required, on the spot (if you use the government wallet). They are a liquidity provider, which is why they need to hold some.
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0 sats \ 0 replies \ @megaptera OP 10 Mar
Nah, buying 1 BTC every day is not needed to be a liquidity provider. 100 Bitcoin would be probably covering that need as there is always a buyer and seller. The comunication of the goverment is clearly showing that they (someone) wanna hold the coins.
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