The Bitcoin move of El Salvador, which broke new ground by accepting Bitcoin as a legal currency, was praised and criticized on the other.
Nayib Bukele, the president of El Salvador, who actively uses social media, continues to buy BTC by evaluating the drop opportunities in Bitcoin and shares these purchases with his followers with great enthusiasm.
A report was shared by a local media outlet on the occasion of El Salvador’s adoption of the law that made Bitcoin the official currency.
This recent report claims that Bitcoin adoption has been a complete fiasco in El Salvador so far.
In the report, it was stated that the people of El Salvador complained that the government did not provide any explanation as to how it spent the money it allocated for Bitcoin purchases.
“The President announced the purchase of 1,370 Bitcoins in these three months alone, of which at least $168.9 million in El Salvadoran money has been spent. However, there is no information about which budget item is spent on, who owns this budget and how it is managed.”
The published report, on the one hand, accused the government of El Salvador of not being transparent, on the other hand, described the recently launched “Bitcoin City” project as “risky” and “hopeless”.
“If the Bitcoin City project goes well, President Bukele will set an example and will be able to tell the multilateral organizations and the international community that we don’t need them, but if it goes wrong, the entire population will lose,” warned Ricardo Castaneda, an Economist at the Central American Institute of Financial Studies.
*Not investment advice.