El Salvador Leader Bukele Calm As Media Label ‘Bitcoin Experiment’ a ‘Failure’

Source: Ricardo Ardon/Unsplash

The mainstream media in El Salvador has torn into into President Nayib Bukele for his perceived silence within the one-year anniversary of bitcoin (BTC) adoption, with multiple outlets and organizations calling the move a “failure.”

Bitcoin was utilized as legal tender exactly last year yesterday, however the anniversary was met with little fanfare through the government – with BTC prices ongoing to slump, media analysts didn’t pull their punches.

The newspaper El Diario de Hoy quoted economists who belittled the government’s insufficient transparency over BTC spending. So far, everything Salvadorans know of the state’s paying for BTC holdings and BTC-related investment continues to be gleaned from Bukele’s Twitter updates around the matter.

One financial expert known as the government’s BTC-related activities “an experiment in improvisation and opacity” – noting that paying for BTC had left the nation inside a “negative financial balance.”

Others claimed that paying for infrastructure for overseas bitcoiners wishing to transfer to El Salvador seemed to be causing financial wrinkles. The economist José Luis Magaña was quoted as stating:

“The bubble of property financing in the united states continues to be given, because all year round we view a boost in purchase of property projects associated with bitcoin.”

Inside a separate report, exactly the same outlet quoted the Central American Institute for Fiscal Studies as proclaiming that the Bukele government’s insufficient transparency over its BTC adoption plans was “alarming.”

Your body known as for El Salvador to reverse its decision to allow BTC legal tender status, explaining the adoption move had include “great costs for Salvadoran society and with no tangible benefits.”

Another major media outlet, La Prensa Gráfica, blamed BTC adoption for souring positive relationships with organizations such as the Worldwide Financial Fund.

Exactly the same outlet quoted Jaime Reusche, a Senior Analyst in Moody’s sovereign risk group, as stating:

“[Adoption] has introduced more costs than benefits. The truth is, the primary cost we have seen is when it’s affected foreign investors’ thought of risk toward El Salvador.”

Foreign media outlets weren’t any less scathing – with Bloomberg writing that Bukele’s “experiment” would be a “revolution” which had unsuccessful to “pan out not surprisingly.” Reuters mentioned the BTC project was “stumbling.”

On Twitter, Bukele retweeted several posts from bitcoiners hurrying to his defense. Also, he shared a publish that claimed he’d soon author an “op-ed” piece around the matter named “Stop Consuming The Elite’s Kool-Aid.”

Bukele also pointed his supporters in direction of a thread from Paolo Ardoino, the main Technology Officer at Bitfinex.

Ardoino authored:

“El Salvador citizens and government are brave. They already know change will not happen per day.”

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