Bitcoin popularity fades further in El Salvador

Bitcoin popularity fades further in El Salvador

Two-thirds of Salvadoran citizens consider President Nayib Bukele’s bitcoin policy a failure and more than three-quarters have never used it, German public news agency Deutsche Welle reports. mentioned this week.

Less than 17% consider it successful, according to the University Institute of Public Opinion of the Jesuit University of Central America. University president Andrew Oliva said that makes it “a measure unpopular with the government of Neb Bukele”.

However, Bukele remains the most popular leader in Latin America, with an approval rating of 86%, CID Gallup He said.

How long this issue will remain is another matter, as the country continues to drive toward a debt default at the beginning of 2023.

The International Monetary Fund (IMF) once again rejected the Bukele administration’s attempts to resume negotiations for a $1.3 billion loan that would allow it to repay bonds maturing at the beginning of 2023, to me Infobae.

“In meetings throughout the year…the IMF has specifically warned Bukele officials that it will be difficult to bring negotiations to a successful conclusion without the Salvadoran government reforming the bitcoin law to remove the cryptocurrency from its status as legal tender,” she said.

“The IMF reiterated to El Salvadorans that without this reform negotiations will not progress,” Infobay added.

Last month, ratings agency Fitch again downgraded El Salvador’s sovereign debt, saying that buying back $565 million of debt for just $275 million does not change the probability of default.

El Salvador’s bonds are currently down more than 57% since January 1, 2019 – although they have been rising steadily since July, when they reached their lowest level at 27.7% of their price since then.

However, plans to issue the bonds have not been abandoned according to Bitfinex CTO Paolo Ardoino, whose exchange plans to tokenize and issue the bonds. He said earlier this year that the company was waiting for the necessary licenses to be issued.

expensive dream

As for the country’s investment in 2,381 bitcoins, it lost more than $60 million out of the $107 million it spent on buying it.

As for remittances, which were introduced as a primary use case for bitcoin as it would allow instant and inexpensive remittances sent via the government’s Chivo digital wallet, the country is not seeing much use. Just under 2% of $5.7 billion Receive Until September came via Chivo.

Another sore point is Bukele’s Bitcoin City project, which was supposed to use the proceeds from a long-delayed Bitcoin-backed bond issuance to start building a geothermal Bitcoin mining facility. An entire city centered around bitcoin was to follow.

But the government did not abandon this dream, a Salvadoran official in its Dutch embassy Tell Cointelegraph on October 14.

“The dream of El Salvador is to have a bitcoin city and from there we make our community bigger and stronger,” said Deputy Ambassador Celari Landaverde. “We are trying to attract more and more investments to this region so that we can develop these communities.”

She added that the country was accepting investments on a first-come-first-served basis, with early entrants receiving better returns, Cointelegraph noted.

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