Critics believe that Bukele's Bitcoin strategy is failing.
El Salvador became the first country in the world to adopt Bitcoin as a legal tender. Fast forward to this year, the crisis worsened in the already battered crypto industry. But President Nayib Bukele plans on doubling down further.
After pledging that the government would purchase one Bitcoin every day going forward, despite the meltdown, the Bukele administration sent a bill to El Salvador’s Congress to enable it to sell $1 billion in “volcano bonds” – government debt, denominated in USD and pay out 6.5% interest a year to bondholders – to purchase more of the crypto-asset and build the hyped “Bitcoin City.”
The dramatic collapse of FTX, a once-prominent crypto exchange founded by Sam Bankman-Fried, has provided endless fodder for the press and long-standing crypto critics alike. And while the negativity continues to dominate coverage of Bitcoin in the Central American country, the national cash crunch appears to be worrying.that the country is on the edge of a debt crisis. With Bitcoin dropping over 70% since September 2021, El Salvador’s $300 million “Bitcoin ‘Revolution” could be in danger.
Bukele has faced severe backlash from the International Monetary Fund . On the other hand, rating agency Moody’s showed that El Salvador’s Bitcoin trades raised its risk profile. Overall, the country’s Bitcoin program experienced several logistical and technical glitches, especially with its Chivo walletFurthermore, there were widespread reports of identity theft after the release of the digital wallet.
The government also presented a bill last month that aimed to set up regulations on the domestic crypto industry by establishing a designated commission.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Swingby Partners With Chainlink To Secure Bitcoin Bridge – Press release Bitcoin NewsPRESS RELEASE. Swingby has recently announced a newly established partnership with Chainlink for Proof of Reserve. The recently publicized partnership is
Les mer »
Bitcoin, Ethereum Technical Analysis: BTC Races to 3-Week High on Monday – Market Updates Bitcoin NewsBitcoin was trading above $17,000 on Monday, as the world’s largest cryptocurrency raced to a three-week high.
Les mer »
El Salvador sends 10,000 police, soldiers to seal off townSAN SALVADOR, El Salvador (AP) — The government of El Salvador sent 10,000 soldiers and police to seal off a town on the outskirts of the nation’s capital Saturday to search for gang members. The operation was one of the largest mobilizations yet in President Nayib Bukele’s nine-month-old crackdown on street gangs that long extorted money from businesses and ruled many neighborhoods of the capital, San Salvador.
Les mer »
Russia’s Sber Bank Aims for Blockchain Integration With Ethereum and Metamask – Finance Bitcoin NewsRussian banking giant Sber wants to integrate its blockchain platform with the Ethereum blockchain and the Metamask wallet.
Les mer »
Applied Direct Response — ERCOT Study Shows Bitcoin Mining Is Beneficial to the Texas Grid – Mining Bitcoin NewsThe report shows bitcoin miners are flexible operations that can be beneficial to the Texas grid during the upcoming winter.
Les mer »
Census Bureau chief defends new privacy tool against criticsThe U.S. Census Bureau’s chief is defending a new tool meant to protect the privacy of people participating in the agency’s questionnaires against calls to abandon it by prominent researchers and demographers
Les mer »