Citizens of El Salvador have spoken out against the purchase of bitcoin by the state

The majority of the country’s population considers the government’s decision to invest in cryptocurrency unsuccessful

Citizens of El Salvador have spoken out against the purchase of bitcoin by the state

Residents of El Salvador do not want the president to continue buying bitcoins with public money. This opinion was expressed by 77.1% of citizens, the University of Central America (UCA) reported, citing a recent survey. In addition, 75.6% of the population has not used cryptocurrency throughout this year, and more than two-thirds (65.5%) consider the government’s decision to buy bitcoin a failure.

It has been more than a year since El Salvador declared bitcoin legal tender. On September 7, 2021, a law recognizing bitcoin as a means of payment went into effect. At the time, the rate of the first cryptocurrency was around $51,000, but has since fallen 62% to its current $19,000 mark on October 20, 2022.

Simultaneously with the legalization of the cryptocurrency, the Buquel government bought the first 400 BTC. Then bitcoins were bought several times. El Salvador currently owns 2,381 BTC, according to Bitcoin Treasuries.

Despite Bitcoin’s significant decline this summer, authorities in the South American country are still sticking to their strategy. El Salvador’s Finance Minister Alejandro Zelaya said in June that the current market crash would not hurt the country’s financial health.

The head of the ministry referred to the report, which showed a $40 million loss from investments in BTC. At the same time, he noted that this amount is less than 0.5% of the total national budget of the country, and the market crash has not increased the financial risks associated with investments in cryptocurrency.

The survey shows that the introduction of bitcoin is the most unpopular action of the authorities and the most criticized by the population, the UCA article says. The authors note that the economic situation is not improving, and Buchele’s bet on bitcoin is failing.

In addition to legalizing bitcoin and buying it, the Salvadoran government has announced plans to create a Bitcoin City. To finance the construction of “Bitcoin City,” Salvadoran authorities planned to issue tokenized 10-year bonds worth $1 billion.

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