El Salvador became the first country in the world to adopt Bitcoin as legal tender. Fast forward to this year, the crisis has deepened in the already troubled cryptocurrency industry. But Chief Neb Bukele is planning further doubling.
After promising that the government would buy one bitcoin every day from now on, despite the crash, Bukele’s administration sent a bill to El Salvador’s Congress to allow it to sell $1 billion in “volcanic bonds” – government debt denominated in US dollars and payable at 6.5% annual interest. For bond holders – to buy more crypto assets and build a “Bitcoin City”.
The dramatic collapse of FTX, a once prominent crypto exchange founded by Sam Bankman-Fried, has provided endless fodder to both the press and longtime crypto critics. And while negativity continues to grip Bitcoin coverage in the Central American country, the national monetary crisis appears to be worrying.
Bukele reacts to critics
The latest reports indicate that the country is on the brink of a debt crisis. With Bitcoin down more than 70% since September 2021, El Salvador’s $300 million “Bitcoin Revolution” could be in jeopardy. But Bukele has criticized the mainstream media for double standards and has continued to do so tweetAnd the
“This article is full of lies, which is standard for Bloomberg… But what’s even more surprising is how the mainstream media cares so much about El Salvador. Corrupt politicians have looted $37 billion from our coffers and haven’t written an article.”
Bukele faced a serious backlash from the International Monetary Fund (IMF). On the other hand, credit rating agency Moody’s noted that the Bitcoin business in El Salvador raised its risk profile. In general, the country’s Bitcoin program has faced many logistical and technical issues, particularly with the Chivo wallet
Moreover, there have been widespread reports of identity theft following the release of the digital wallet. Several Salvadorans claimed that the $30 sign-up bonus was depleted before they could access the system.
Bitcoin strategy development
The latest comments come days after the El Salvadoran government announced a new crypto initiative called the National Bitcoin Office (ONBTC) to oversee all local projects related to the asset. The National Office for Trade and Contracting (ONBTC) is expected to function as a “specialized administrative unit with functional and technical autonomy within the Presidency of the Republic.”
The government also unveiled a bill last month that aims to regulate the local crypto industry by creating a designated committee.
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