Salvador: President Bukele will buy one bitcoin a day

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salvadorPresident Bukele will buy one bitcoin a day

The Central American country will invest on Thursday in a crypto unit to facilitate money transfers. The method sows doubt.

Taking advantage of the fall in prices, Nayib Bukele had bought with public funds last July 80 bitcoins at 19,000 dollars per unit, bringing the country’s basket to a total of 2,381 units.

AFP

“We are buying one bitcoin per day starting tomorrow,” El Salvador President Nayib Bukele wrote on Twitter. The Central American country adopted bitcoin as legal tender in 2021, and will proceed from Thursday to the purchase of a unit of the cryptocurrency each day, when it evolves below the 20,000 dollar mark. In contrast, it had reached some $68,000 in November 2021.

According to a survey by the Jesuit University of Central America (UCA), published in October, a majority of Salvadorans (75.6%) say they have never used cryptocurrency in 2022, and 77% consider that its adoption “was a failure”.

A “criticized” measure to help emigrants

Bitcoin “is the government’s most unpopular measure, the most criticized and the least appreciated,” said UCA rector Andreu Oliva, commenting on the results of this survey.

President Bukele’s idea was to promote money transfers from some 3 million emigrants, mainly in the United States, to their relatives back home, by saving bank charges. A strategic issue, since these transfers weigh more than a quarter of El Salvador’s GDP.

But according to data from the Salvadoran Central Bank in early September, a year after the introduction of bitcoin, “less than 2%” of remittances from emigrants went through cryptocurrency. The adoption of cryptocurrency in El Salvador has been questioned by the World Bank and the IMF.

(AFP)

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