El Salvador Defends Bitcoin Buys as Prices Slide
El Salvador’s government has defended its ongoing Bitcoin purchases amid a price slide, saying the acquisitions are part of a longer-term reserve strategy. Vice President Félix Ulloa reiterated that Bitcoin is being accumulated as preparation for a future in which fiat currencies may lose dominance, and officials dismissed critics who have highlighted short-term losses and volatility.
The stance keeps El Salvador at the forefront of sovereign crypto adoption and underscores a broader debate over using volatile digital assets as national reserves. For markets and policymakers, the move is a live test of whether crypto can function as a reserve asset and what risks that entails for public finances. Observers will be watching for further buys, fiscal reporting on holdings, and any follow-up policy steps from San Salvador.