- The leading crypto bursts past $30,000 for the first time since June 2022.
- President Bukele’s BTC portfolio is up 41.32% since applying DCA (Dollar Cost Average).
- El Salvador leads the yearly emerging market sovereign bond index with 22.2%.
After El Salvador managed to repay its $800 million foreign debt bond in full, many financial experts and mass media outlets started taking the nation’s Bitcoin journey more seriously.
The Great Billion Dollar Rebrand, as described by Stacy Herbert, wife of the famed Bitcoin Maximalist Max Keiser, comes in all shapes and sizes – a flourishing international and national tourism sector, dramatically reduced violent crime rate, and the promise of financial liberty.
El Salvador Dodges a Bullet
While the price of this foreign debt bond plunged throughout 2021 and 2022, El Salvador’s financial success this year is evident in the fact that the small Latin American country is the top outperformer on Citi’s Emerging Market Sovereign Debt Index, with 22.2% returns on loans.
El Salvadoran President Nayib Bukele has praised the leading digital asset on many occasions, claiming that BTC helped get the country back on its feet by providing learning opportunities and a chance at financial freedom.
Bukele’s famous crypto portfolio doesn’t look as red as last year. His decision to buy one Bitcoin a day is paying off with 41.24%, which adds an extra $1 271 882.17 to the Bitcoin-loving President’s crypto bags. At $80.21 million, El Salvador’s Bitcoin investments are still 29.21% down but have erased more than half of the initial deficit since Bukele’s November 2022 tweet.
Curb Crime & HODL Bitcoin
Even so, the recent piece on El Salvador by the Financial Times denounced Bitcoin’s impact on the country’s financial system revival. The popular financial newspaper refuted the claims that Bitcoin becoming a legal tender in the country was the turning point. According to the article, it was Bukele’s clever play with foreign loan buybacks that helped stabilize El Salvador’s economy.
On the other hand, the International Monetary Fund (IMF) emphasized in its latest report on El Salvador that an “unprecedented reduction in crime has contributed to robust economic and investment activity.” The IMF report refers to President Bukele’s all-out war with local gangs, for which he built a special mega prison called the “Terrorism Confinement Center.
On The Flipside
- The International Monetary Fund (IMF) claimed that there’s a high probability that El Salvador would default on the $800M loan.
- However, the IMF started collaborating with El Salvador’s government on fixing the country’s financial crisis and became long-term partners.
Why You Should Care
El Salvador is the first country to adopt Bitcoin as a legal tender.
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