A central American country, El Salvador, has been buying Bitcoin since September. However, the country’s big bet on crypto has collapsed in recent weeks because the cryptocurrency washed out roughly a third of the value of the government’s assets.
El Salvador is the first country to adopt bitcoin as a legal tender. They also plan to create a crypto mining hub using power from volcanoes and issue the first sovereign bond linked to bitcoin.
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Crypto Crash zatvorene specifične potencijalne rute
Apart from a significant rise in debt repayment obligations and an increase in the global borrowing costs, El Salvador is also facing a big challenge of the effects of currency depreciation. However, the crypto collapse has closed specific potential escape routes from the crisis, like the now-delayed bitcoin bond.
Ricardo Castaneda, koji radi kao viši ekonomista i koordinator za zemlju za El Salvador i Honduras u think tank Centralnoameričkom institutu za fiskalne studije (ICEFI), rekao je;
The government’s financial problems are not because of bitcoin, but they have gotten worse because of bitcoin,” For the government, bitcoin ceased to be a solution and has become part of the problem.
Since last September, when El Salvador officially adopted Bitcoin as legal tender, the coin price has dropped 45%. And from its May high, the BTC has lost 26% of its value as investors have shifted their money into other assets.
Prema CoinMarketCap-u, cjelokupna tržišna vrijednost kriptovaluta upravo je smanjena na 1.2 biliona dolara, manje od polovine svog vrhunca u novembru.
Prema statista, dug El Salvadora je porastao na 24.4 milijarde dolara prošlog decembra u poređenju sa ukupnom obavezom od 19.8 milijardi dolara u decembru 2019. Do značajnog porasta došlo je zbog velikih troškova koje je izvršio menadžment Bukele da bi se izborio sa pandemijom COVID-19 i poslednjih nekoliko godina ' ekonomske gubitke.
Međunarodni monetarni fond (MMF) vjeruje da će deficit tekućeg računa za privredu Salvadora, koja se u velikoj mjeri oslanja na novac koji šalju ljudi koji žive u inostranstvu i strana ulaganja, iznositi oko 2 milijarde dolara svake godine do 2025.
Effects Of Legalizing Bitcoin
The legal acceptance of Bitcoin by El Salvador created distance from the global lenders like IMF, from where Alejandro Zelaya, the Finance Minister, was očekujući zajam od 1.3 milijarde dolara na 36 mjeseci u prošloj godini.
IMF advised El Salvador to drain off Bitcoin completely. As per the statement of an IMF administrative, any credit approval deal will have to highlight risks like “those related to the adoption of bitcoin as legal tender and risks related to economic governance.”
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Siobhan Morden, šef strategije fiksnog prihoda Latinske Amerike u Amherst Pierpontu, komentirala je,
If there isn’t potential for bitcoin-growth dividends or innovative bitcoin-financing, then the Bukele administration will have to prioritize spending priorities and identify financing options
As per an estimate, almost a $36 million loss in Bitcoin; the government purchased 2,301 coins worth $104.2 million and now depreciated to $67.9 million due to a decrease in the coins’ market price.
Istaknuta slika sa Pixabaya i grafikon sa trading view.com
Source: https://bitcoinist.com/el-salvador-faces-no-easy-exit-from-worsening-crisis-amid-crypto-crash/