Bulgaria owns bitcoins worth more than 3 billion euros. An amount through which the country would be able to repay a large part of its debts. However, this poses risks - because it could lead to a collapse of bitcoin, say a number of media quoted by Deutsche Welle.
In recent weeks, a number of foreign media have glanced at Bulgaria. The reason: the poorest country in the EU has suddenly been the owner of a valuable treasure - over 210,000 bitcoins confiscated within a special operation in May this year. At the time of confiscation, the cost of those bitcoins was about 400 million euros.
But over the course of the crypto-hit, the over 210,000 bitcoins turned into 3.3 billion euros - an amount that Bulgaria could repay about 20% of its public debt. For this purpose, the country must first sell the bitcoin - and that is where the problem lies: if Bulgaria releases such a large amount of bitcoin at once, the price of the crypto will fall drastically. So far, the Bulgarian government does not say what it intends to do with its new treasure. And it's unclear whether they own the passwords required to sell the crypto-data.
Until recently, cryptocurrency were mostly used by criminal groups. Drug traders used the bitcoin as an anonymous payment tool, online blackmailers hide their traces with them, and customs fraudsters transferred huge sums from one country to another.
It is for this reason that many countries have a tremendous distrust of cryptocurrency: in Russia, access to a number of crypto exchange sites is blocked; in many African and Central Asian countries, the trade in bitcoin is totally forbidden; China has stopped the stock exchange trading of digital currencies.
Trader Bozhidar Arabadzhiev
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.