Nayib Bukele made El Salvador lose millions of dollars due to the fall of bitcoin

El Salvador is the first country to authorize bitcoin as a regular currency.

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The price of bitcoin continues to fall and is approaching dangerous territory, but one of those who might be lamenting the pullback is the president of El Salvador, Nayib Bukele, who would have caused his country to lose at least $ 12 million.

It seems like a smaller amount, but it is high considering that the investment in that cryptocurrency by the Bukele Administration was about $ 71 million dollars, according to an analysis by Bloomberg.

It is added that the purchases of 1,391 tokens by El Salvador with public funds would have gone from the aforementioned figure to $ 59 million dollars.

It should be noted that these are calculations, since transparency is not one of the strengths of the Salvadoran government, so official data is unknown.

Economic experts warn of the risk of Bukele with the economy of El Salvador, due to the poor performance of government bonds.

In 2021, Bukele quickly pushed through a law to make bitcoin an official national currencyalong with the US dollar, which has been the currency since 2001, but the experiment has not worked.

“More than 91 percent of Salvadorans want dollars, not bitcoins,” indicates a report by FP Insider. “Bukele’s financial problems continue. El Salvador cannot print its own dollars ”.

Experts say that President Bukele needs to finance his heavy deficit spending.

“The International Monetary Fund has not lent the country the billion dollars that Bukele asked for and has expressed its strong concern about the Bitcoin scheme,” the report recalls.

This year’s plan for a buying $ 1 billion in bitcoin could be a severe risk for El Salvador, especially by the company with which you intend to make the transaction.

This is Bitfinex Securities, a new unit of iFinex, which manages the cryptocurrency exchange, which was fined $ 18.5 million by the state of New York in February and $ 41 million by the Futures Trading Commission. and US Commodities last October, for repeated misrepresentations and mismanagement over several years.

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