Nayib Bukele Still Thinks Highly of Bitcoin, Compares it to FTX Collapse

• El Salvador is the first country to accept Bitcoin as a Legal tender. 

Bitcoin is one of the most popular cryptocurrencies with the biggest crypto market.  

Once again, on 14 November 2022, Nayib Bukele, president of El Salvador, posted on Twitter, “claiming Bitcoin is opposite to FTX exchange,” Further, in the same post, the president termed FTX as a Ponzi Scheme.”

Nayib Bukele became the first president globally to approve Bitcoin as a legal tender and a mainstream payment mode in the country.  

In this country, there is a separate administration called BANDESAL, which inspects every bit of data related to bitcoin transactions in the nation. The organization has refused to share the information with the users by saying “the information was confidential.”

Bukele is always listed among top crypto promoters and enthusiasts and believes that Bitcoin is meant to avoid the Ponzi scheme.  

Recently, a survey conducted in the nation showed 77.1% said the country’s administration should stop utilising public funds to buy bitcoins. But the country’s administration had argued that adopting bitcoin in the state would help recover other industries’ economic conditions.

El Salvador’s president stated an example of Bernie Madoff’s Ponzi scheme, which wiped out $64.8 billion in 2019. Further, he mentioned Sam Bankman-Fried and criticised him for confidentially transferring users’ funds to Almeda Research.   

Moreover, several reasons for FTX collapse still need to be clarified, and law enforcement of concerned nations is working to resolve the mystery.  

Earlier on 29 October 2022, El Salvador signed an MoU with the city of Understanding (MoU) on Economic Cooperation.    

This announcement was made on the first day of Tether’s inaugural Plan ₿ forum in Lugano, Switzerland.

The following partnership is a step towards cooperation in education and research that will support initiatives to drive Bitcoin adoption and the rest of cryptocurrencies throughout its respective regions.

El Salvador created history when it repurchased its sovereign debt bonds maturing in 2023 and 2025 for around $565 million.   

Following official information, El Salvador bought 54% of the bonds maturing in 2025 for a total of $432million. And it purchased 22.4% of the bonds maturing in 2023 for a total of $133 million.  

Nayib Bukele mentioned that El Salvador would launch a new offer for the rest of the 2023 and 2025 bonds in eight weeks. As with the recent repurchase, it will be followed “at market price.” Bukele mentioned that the initial repurchases have saved the country more than $275million.    

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

Latest posts by Nancy J. Allen (see all)