Bitcóin in El Salvador ... did the honeymoon end?

Bitcoin in El Salvador… is the honeymoon over?Bitcoin in El Salvador… is the honeymoon over?SAN SALVADOR (Sputnik) — The problems with the government electronic wallet and the lack of liquidity vanish the initial enthusiasm of salvadorans who... 09.01.2022, Sputnik Mundo2022-01-09T19:30+00002022-01-09T19:30+00002022-01-09T20:40+0000latin america💬 opinion and analysisel salvadorbitcoin💶 currencies/html/ head/meta[@name='og:title']/@content/html/head/meta[@name='og:description']/@contenthttps://cdnnmundo1.img.sputniknews.com/img/07e6/ 01/09/1120123749_0:0:3073:1728_1920x0_80_0_0_b4305e0f36ad8745a710ecacea519666.jpgNot even the spectacular futuristic projects announced by President Nayib Bukele fully convince a population too overwhelmed by inflation and frustrated with the fluctuations of cryptocurrency and the robbery in his Chivo Wallet. Many users denounce irregularities on social networks such as carrying out unauthorized transactions in the name of Chivo S.A. de C.V, the company that develops the application, and which, because it is private, is not obliged to render certain accounts. According to such public complaints, almost all of them accompanied by screenshots, the missing bitcoin funds from the aforementioned wallet range from 100 up to 16,000 dollars, without the authorities ruling on the problem. This is hardly a new problem associated with bitcoin, which began to circulate as legal tender in El Salvador on September 7, since since its inception there have been reports of identity and data theft. In turn, this led to an avalanche of digital scams, and bots that offer false customer service, and that through links to forms or false websites seek to steal user data or, directly, access their electronic wallets.Smoke screen"Hey maje [friend], this is pure straw" (Salvadoran expression that means 'smoke screen' or 'lie'), a parishioner who observes in a crowded mall the loneliness of a cashier Goat and the adviser in charge, young people with more disposition than people to help.Distributed throughout the country, and with an estimated installation cost close to a quarter of a million dollars, these cashiers aspire to make life easier for Salvadorans, especially when it comes to sending and collecting remittances without paying commissions. To convince a nation where 70% of the population lacks financial services or traditional banks, the Bukele administration paid a bonus of 30 dollars to those who installed the Chivo Wallet (and, at the same time, handed over all their biometric data). A shrewd and irreverent Twitter user, Bukele has managed to sell his project, which some revere as visionary and futuristic, and others as an unsustainable blockbuster, with the that a few will get rich at the expense of the public treasury and other people's money. For now, Bukele highlights the purchases that the Executive makes when bitcoin is down, with the idea of ​​more than recovering this investment when the cryptocurrency rises again , a strategy that seems logical, but it is not free of controversy either. From the outset, the Government does not report how it pays and where it keeps the 1,400 bitcoins that it has acquired since the legalization of this cryptocurrency, which breaks the commandment of transparency and freedom proclaimed by the defenders of this practice. Specialized in science issues, Guillermo explained to the Sputnik Agency that many do not want to comment on this type of matter for fear of institutional reprisals, but he estimates that in general skepticism and mistrust predominate. "How much more will they have What do Salvadorans expect to see the supposed benefits of this initiative?" asked the interviewee, for whom everything is nothing more than a gigantic propaganda display. Like him, the activist Sofía preferred not to give her real name, but agrees that the Ordinary Salvadorans do not perceive the improvements, they see life as more expensive, insecurity the same or worse, and education without improving.Bitcoin cityTo all of these, last November the president announced the creation of Bitcoin City, a city that will work exclusively with cryptocurrency, powered by volcanic energy, without taxes on income, profits or property. To do this, the country will issue a bond for 1,000 million dollars at 10 years with a coupon of 6.5%: half of said amount will be destined to buy bitcoins, and the rest to develop an amazing infrastructure, at least in its model. The Salvadoran Minister of Finance, Alejandro Zelaya, announced in a recent press conference that the issuance of bitcoin bonds could be between February and March of this year , hoping that this strategy will be successful. For now,Zelaya announced that the Treasury is preparing the presentation of 20 bills to provide a legal framework for the aforementioned bonds, which would be approved without problems by the Legislative Assembly (Parliament) with an official majority. To attract money, the Government has even put resources based on investors such as Max Keizer, director of the Blockstream platform, who traveled in an Armed Forces helicopter to the area where Bitcoin City would be built. Good business? The Government needs this to work for it, for now, everything indicates that it has lost some 11 million dollars since it began the adventure of bitcoin, which began the year trading at "barely" 43,000 dollars. In a recent thread on Twitter, the American bitcoiner and youtuber Marc Falzon calculated that bitcoin would need to reach the 155,588 dollars so that El Salvador reaches, at least, a balance between what is spent and what is recovered. Falzon points out that, between the public money used to buy bitcoins, and the trust created by the ruling party to guarantee operability in the country, the The Bukele administration has spent some 205 million dollars. With the current price, the bitcoins held by the Government of El Salvador are worth only 64 million dollars, that is, barely a third of what was invested. Such speculation has already motivated popular demonstrations against the administration of Bukele, and it is expected that the rejection of bitcoin will also lead a protest called for next January 16, the thirtieth anniversary of the Peace Accords. https://mundo.sputniknews.com/20211222/el-bitcoin-protagoniza-otro-ano-politicamente-convulso-para-el-salvador-1119606207.htmlhttps://mundo.sputniknews.com/20211129/bukele-apuesta- by-bitcoin-and-stresses-the-relation-of-el-salvador-with-the-imf-1118777358.htmlhttps://mundo.sputniknews.com/20211207/cryptocurrencies-choose-latin-america- to land-a-regional-x-ray-1119079288.htmlel salvadorSputnik World contact@sputniknews.com+74956456601MIA „Rosiya Segodnya“252602022Tomás Lobo Tomás Lobo News_ESSputnik World contact@sputniknews.com+74956456601 MIA „Rosiya Segodnya“2526019201080true19201440truehttps://cdnnmundo1.img .sputniknews.com/img/07e6/01/09/1120123749_0:0:2731:2048_1920x0_80_0_0_7e640cc0d197fd68a985d14d0fef32f7.jpg19201920trueSputnik World contact@sputniknews.com +74956456601MIA „Rosiya Segodnya“25260Tomás Lobo 💬 opinion and analysis, el salvador, bitcoin, 💶 currency19:30 GMT 09.01.2022(updated: 20:40 GMT 09.01.2022)© AP Photo / Salvador MelendezThe use of bitcoin in El Salvador© AP Photo / Salvador MelendezFollow us on Tomás LoboAll articlesSAN SALVADOR (Sputnik) — The problems with the government electronic wallet and The lack of liquidity fades the initial enthusiasm of Salvadorans who received the arrival of bitcoin with optimism last September. Not even the spectacular nature of the futuristic projects announced by President Nayib Bukele fully convinces a population that is too overwhelmed by inflation and frustrated with the fluctuations in cryptocurrency and theft in their Chivo Wallets. Many users denounce irregularities on social networks such as carrying out unauthorized transactions in the name of Chivo S.A. de C.V, the company that develops the application, and which, because it is private, is not obliged to render certain accounts. According to such public complaints, almost all of them accompanied by screenshots, the missing bitcoin funds from the aforementioned wallet range from 100 up to 16,000 dollars, without the authorities ruling on the problem. This is hardly a new problem associated with bitcoin, which began to circulate as legal tender in El Salvador on September 7, since since its inception there have been reports of identity and data theft. In turn, this led to an avalanche of digital scams, and bots that offer false customer service, and that through links to forms or false websites seek to steal user data or, directly, access their electronic wallets.

Smokescreen

"Hey maje [friend], this is pure straw" (Salvadoran expression that means 'smokescreen' or 'lie'), a customer who is watching in a crowded shop told Sputnik Agency shopping center the loneliness of a cashier Goat and the adviser in charge, young people with more willingness than people to help.Distributed throughout the country, and with an estimated cost of installation close to a quarter of a million dollars, these cashiers aspire to facilitate life to Salvadorans, especially when it comes to sending and collecting remittances without paying commissions. To convince a nation where 70% of the population lacks financial services or traditional banks, the Bukele administration paid a $30 bonus to those who installed the Chivo Wallet (and, at the same time, handed over all their biometric data). A shrewd and irreverent Twitter user, Bukele has managed to sell his project, which some revere as visionary and futuristic, and others as an unsustainable blockbuster, with which A few will get rich at the expense of the public treasury and other people's money.Latin AmericaBitcoin stars in another politically turbulent year for El SalvadorDecember 22, 2021, 13:50 GMTFor now, Bukele highlights the purchases made by the Executive when bitcoin is at the low, with the idea of ​​more than recovering this investment when the cryptocurrency rises again, a strategy that seems logical, but is not free of controversy either. From the outset, the Government does not report how it pays and where it keeps the 1,400 bitcoins it has acquired since the legalization of this cryptocurrency, which breaks the commandment of transparency and freedom proclaimed by the defenders of this practice."Funds were taken from the nation, without consultation, for something that has not given the results we were promised: unemployment continues, migration increases, we do not see a real change," said a communicator who identified himself as Guillermo. Specializing in science issues, Guillermo explained to the Sputnik Agency that many do not want to comment on this type of matter for fear of institutional reprisals, but he believes that in general skepticism and distrust predominate. "How much longer will Salvadorans have to wait to see the supposed benefits of this initiative?" asked the interviewee, for whom everything is nothing more than a gigantic propaganda display. Like him, the activist Sofía preferred not to give her real name, but she agrees that ordinary Salvadorans do not perceive the improvements, they see life as more expensive, insecurity the same or worse, and education without improving." Being very pragmatic, bitcoin does not it is a panacea, it is not the solution to the problem, it is not even palliative," declared the young woman.

Bitcoin city

To all of these, last November the president announced the creation of Bitcoin City, a city that It will run exclusively on cryptocurrency, fueled by volcanic energy, with no income, profit or property taxes. To do this, the country will issue a $1 billion 10-year bond with a 6.5% coupon: half of Said amount will be destined to buy bitcoins, and the rest to develop an amazing infrastructure, at least in its model. The Salvadoran Minister of Finance, Alejandro Zelaya, announced in a recent press conference that the issuance of bitcoin bonds could be between February and March of this year, with the hope that this strategy will be successful. Cold and hard Bukele bets on bitcoin and strains El Salvador's relationship with the IMF November 29, 2021, 22:15 GMT For now, Zelaya announced that the Treasury is preparing the presentation of 20 bills to provide a legal framework for the aforementioned bonds, which would be approved without problems by the Legislative Assembly (Parliament) with an official majority. To attract money, the Government has even put state resources in function of investors such as Max Keizer , director of the Blockstream platform, who traveled in an Armed Forces helicopter to the area where Bitcoin City would be built.

Good business?

The government needs this to work for it, for now, everything indicates that it has lost some 11 million dollars since it began the adventure of bitcoin, which began the year trading at "barely" 43,000 dollars. In a recent thread on Twitter, the American bitcoiner and youtuber Marc Falzon calculated that bitcoin would need to reach the 155,588 dollars so that El Salvador reaches, at least, a balance between what is spent and what is recovered. Falzon points out that, between the public money used to buy bitcoins, and the trust created by the ruling party to guarantee operability in the country, the administration Bukele has spent about 205 million dollars. With the current price, the bitcoins owned by the Government of El Salvador are worth only 64 million dollars, that is,barely a third of what was invested. Such speculation has already motivated popular demonstrations against the Bukele administration, and it is expected that the rejection of bitcoin will also lead a protest called for next January 16, the thirtieth anniversary of the Peace Accords. Latin AmericaCryptocurrencies choose Latin America to disembark: a regional x-rayDecember 7, 2021,