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February 01, 2022
The President of El Salvador, Nayib Bukele, announced on Twitter that his country recently spent around $15 million on 410 bitcoin.
El Salvador started buying bitcoin in September last year after it began using the top cryptocurrency as legal tender. The country now holds 1,801 bitcoin acquired through the recent price dips.
El Salvador installed bitcoin vending machines, launched the Chivo wallet app, and started mining bitcoin with volcanic energy. A few weeks ago, President Bukele unveiled plans to build a Bitcoin City. The country hopes to attract bitcoiners and crypto companies through its crypto-friendly attitude.
The IMF sees bitcoin as a threat to El Salvador’s financial stability. It also dislikes Bukele’s plans to raise $1billion through bitcoin bonds. Half of the bitcoin bond funds would go toward further bitcoin purchases. The other half would finance mining infrastructure and energy projects.
El Salvador needs the support of the IMF, however. It is currently looking to secure a $1.3 billion loan. The bitcoin experiment may impede its ability to secure the funds.
