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El Salvador: Media describe the Bitcoin experiment as a failure

 


El Salvador President Nayib Bukele is calming down as more and more media outlets call the Bitcoin experiment a failure.


Mainstream media in El Salvador has attacked Bukele for his alleged silence on the one-year anniversary of Bitcoin's launch, with multiple media outlets and organizations calling the move a failure.


Exactly one year ago, Bitcoin was introduced as legal tender in El Salvador. Due to the ongoing bear market, there is little positive coverage of the anniversary.


El Diario de Hoy newspaper quoted economists criticizing the government's lack of transparency on BTC spending. So far, everything Salvadorans know about state spending on BTC holdings and BTC-related investments has been gleaned from Bukele's Twitter posts on the subject.


One financial expert called the government's BTC-related activities an experiment in improvisation and opacity. He noted that spending on BTC had left the country in negative financial territory.


Others argue that spending on infrastructure for foreign bitcoiners hoping to emigrate to El Salvador also created financial problems. Economist José Luis Magaña was quoted as saying:

“The real estate finance bubble in the country has been fueled as we have seen a surge in investment in Bitcoin-related real estate projects throughout the year.”


In another report, the same newspaper quoted the Central American Institute for Fiscal Studies as saying that the Bukele government’s lack of transparency about its Bitcoin adoption plans was alarming.


The panel asked El Salvador to reverse the decision to make Bitcoin legal tender. It explained that the adoption move would entail high costs for Salvadoran society and no tangible benefits.


La Prensa Gráfica , another outlet, blamed the adoption of Bitcoin for damaging positive relationships with organizations like the International Monetary Fund.


The medium quoted Jaime Reusche, senior analyst at Moody's Sovereign Risk Group:


“Adoption has brought more costs than benefits. In reality, the main cost we have seen is the impact on foreign investors' risk perceptions of El Salvador."


Foreign media were not so harsh. Bloomberg wrote that Bukele's experiment was a revolution that did not go as expected. Reuters explained that the BTC project is stuttering.


On Twitter, Bukele retweeted several posts from Bitcoiners defending him. He also shared a post claiming that he would soon be making a commentary on the subject titled "Stop Drinking The Elite's Kool-Aid."


He also pointed out a thread by Paolo Ardoino, CTO of Bitfinex.


Ardoino wrote:


“The citizens and government of El Salvador are brave. They know that change won't happen in a day."

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