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El Salvador approaches bankruptcy after bitcoin collapse

Naib arrived in the presence of Bukele Protector With the promise that the country will take bitcoin as a legal…

By admin , in news , at May 10, 2022

Naib arrived in the presence of Bukele Protector With the promise that the country will take bitcoin as a legal currency.

The volatility of the cryptocurrency has led various world organizations to view El Salvador as a single country. bankruptcy in a few months. Bitcoin gains and loses a great deal of value in a short amount of time, something that Bukele already knew when he equalized his country for the first time in the world. Dollar and bitcoin for use.

‘big risk’

In October, $25 million was sent from El Salvador’s reserves to be converted into cryptocurrency. Rating agencies resonated heavily risk What is meant by “implied volatility of prices”, assured Fitch Ratings,

Now in contact with El Salvador non-payment bond which has a commitment of $800 million for January 2023 and International Monetary Fund (IMF) has already warned that it will not help the Central American country. At the time, the IMF urged El Salvador to abandon bitcoin, but watch Betting on cryptocurrency continued.

Bitcoin reaches its all-time high on November 10, 2021 $68,991And since then, six months from now, in terms of tightening monetary policies of various central banks to counter high inflation, it has declined by about 53%.

El Salvador’s credit rating is ‘Basura’ Which means it cannot issue more loans or go to global markets to raise loans. citizens are barely aware of digital currencies and watch He continues to encourage the use of cryptocurrencies on his Twitter account.

The final message makes sure that if you sell 500 bitcoins The one who bought El Salvador a few hours ago could have made a million dollars, but he wouldn’t.

On his Twitter account, Bukele only writes about his government’s fight. drug trafficking And the benefits of cryptocurrency adoption. In January 2022, he claimed this decision, announcing that there would be more countries taking advantage of virtual currencies and pushing for its creation. bitcoin city,

El Salvador wants to be a cryptocurrency mining paradise. Bitcoin City will be a metropolis built to grow the industry and the crypto community. Design assigned to Mexican ferdinand romero And will be financed entirely by bitcoin.

Bukele’s hit is to confront his debt and demonstrate that acceptance of virtual currency has improved the future. Protector,