El Salvador’s adoption of Bitcoin as legal tender in Sept. 2021 coincided with notable shifts in the country’s inflation rate. Inflation stood at 4.9% when the government first purchased 200 BTC on Sept. 6, 2021. By June 2022, inflation peaked at 7.76%, then began a steady decline to 2.6% by Jan. 2024 and further to 0.58% by Sept. 2024.
El Salvador Inflation Rate | Source: Trading Economics
The government’s Bitcoin holdings have grown to 5,898 BTC, valued at $364 million. This move aimed to diversify the economy and reduce dependence on the US dollar. The initial surge in inflation mirrored the global impact of the pandemic but may also reflect market adjustments to integrating crypto into the national economy. As Bitcoin became more established, inflation rates decreased, suggesting a potential correlation between adoption and price stabilization.
Although the country’s trade deficit widened slightly to $785 million in August 2024 from $769 million, the current account shifted
We współpracy z: https://cryptoslate.com/insights/how-el-salvadors-bitcoin-gamble-impacted-inflation/
