El Salvador loses 65 million dollars in bitcoins

Since the FTX collapse began, El Salvador has lost $65 million of the $105 million the Central American nation invested in the world’s most traded cryptocurrency, The Economist reported over the weekend.

Nayib Bukele, president of El Salvador, has issued several comments since the debacle of the cryptocurrency market began and has publicly faced criticism about his commitment to the use of bitcoin as a currency of common use.

The president has gained notoriety among bitcoin investors thanks to his bill to issue a bond backed by said cryptoactive, called “volcano bond.”

In February he announced that he would carry out more than 52 reforms to make the creation of this bond possible, although his detractors argued that with this instrument the public debt of El Salvador would skyrocket, which is already equivalent to 85% of its Gross Domestic Product (GDP). .

On November 22, he announced that the bill was already in Congress.

Despite the criticism from a broad sector of the population in El Salvador and the disagreements with international organizations such as the International Monetary Fund, Bukele has not changed the course of his agenda and continues to bet on a sector that is in crisis.

On November 16, he wrote on his twitter account “We will buy a bitcoin every day”.

Bitcoin has lost more than 22% of its value since November 6. So far in 2022, the cryptocurrency has already accumulated a setback of 64.5 percent.

termometro.economico@eleconomista.mx