El Salvador's $425 million bitcoin experiment isn't saving the country's finances

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The government's crypto coffers have been cut in half, bitcoin adoption nationwide isn't really taking off, and the country has big upcoming debt payments.

Well before President Bukele got it in his head that bitcoin was a magical elixir that would bandage over longstanding economic vulnerabilities, the country was in a lot of trouble.

In a research note from JPMorgan, analysts warn that El Salvador's Eurobonds have entered "distressed territory" in the last year, andthat the cost to insure against a sovereign debt default is hitting multi-year highs. "In the past three, four months, what they've done is implement gasoline subsidies, which are super expensive," said Muci, who has expertise in economic diversification and public financial management, and has taken part in applied research projects for El Salvador, Venezuela, and Honduras.

All this comes as El Salvador faces imminent debt repayment deadlines in the billions of dollars, including anEl Salvador has been trying since early 2021 to secure a $1.3 billion dollar loan from the IMF — an effort thatover President Bukele's refusal to heed the organization's advice to ditch bitcoin as legal tender.

 

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We're kind of in a recession, you know a bear market? There is more to bitcoin than the current price.

Instead they should get screwed by the World Bank and IMF. How dare they?!

You keep repeating the fabula of IMF, nayibbukele is not trying to save el Salvador with BTC, this is only a way to save values and provide a different alternative to the citizens

Nothing like good old fashion silver,gold,bronce & copper.

RemindMe_OfThis in 2 years

Uh, sorry. BTC doesn't fix anything. Crypto decentralized is its fail. Every time a donut is bought or sold, all the ledgers across the world must be updated. Who invented this stupidity? That Satoshi guy went into hiding after he realized he blew it. BTC BitcoinCrash

A pyramid scheme didn’t save them? Shocking

Just say no

Keep this same energy next year…

Why on earth would any rational actor give up control of their currency to the unwashed masses (and monied interests?)

Neither was $usd

Could you give them a little time? ffs 😆

Just asking for a friend so what did BTC do to account for its price, nothing is produce and back by nothing.

Replacing one currency with no government faith with another is not the answer.

You are wrong.

FUD it's a small % of their gdp

This post wont age well

Wonder how much rampant inflation is hurting them?

fake news media

Who convinced El Salvador is more interesting. Because of this, btc made kinda floor. Combine this with higher energy and you have less mining so less supply I would say...

No, but the tourism of Bitcoin maxis flocking into the country and spending is saving the country's finances. The Chad nayibbukele is winning.

Lol at least they tried

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