February 5, 2023

CABEI Chairman: "Bitcoin is not very popular among Salvadorans"

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CABEI Chairman: "Bitcoin is not very popular among Salvadorans"

The chairman of the Central American Bank for Economic Integration (CABEI), Dante Mossi, said that bitcoin is not in high demand among the population of El Salvador.

Dante Mossi acknowledged that in generalafter the adoption of bitcoin as legal tender in El Salvador, this cryptocurrency has become more popular. However, the local population is not too interested in using bitcoin. His comments come amid growing criticism and uncertainty about El Salvador's bitcoin experimentation, especially after the BTC price has more than halved in recent months.

As of July 2022, owned byThe government of El Salvador has 2,381 BTC. In November, the President of the country, Nayib Bukele, announced that the Salvadoran authorities would resume the purchase of a crypto asset and would buy 1 bitcoin daily.

The banker cited Nayib Bukele data as an examplePortfolio Tracker, according to which the country spent $109 million to buy bitcoin, but lost more than $51 million due to market volatility. Last month, CABEI provided a $450 million loan to El Salvador, and it is expected that most of it will be used to redeem bonds next week. According to Mossi, El Salvador authorities are prohibited from using these funds to buy bitcoins, and the use of these funds will be verified in six months.

CABEI engages with El Salvador to collectinformation, which should also include data on the purchase of bitcoin by the local government. The resulting data will then be submitted to the International Monetary Fund (IMF) for further guidance.

Recall that in autumn the State Bankdevelopment of El Salvador, BANDESAL refused to provide data on bitcoin transactions to the anti-corruption bureau. Therefore, the advocacy group Cristosal recently called on the Bukele administration to ensure full transparency regarding the use of public funds associated with bitcoin.