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Despite accepting Bitcoin, El Salvador has repaid its $800 million bond
Nayib Bukele - the president of El Salvador - announced that the government had repaid its $800 million bond plus interest on the same day it matured. The bond settlement comes despite pessimistic views that the nation will face financial challenges due to its Bitcoin forays. “We just paid in full” El Salvador's political leader, who is one of Bitcoin's biggest supporters, announced the news on Twitter and regretted that most international media outlets had not disseminated the information. At the same time, they were among the first to doubt whether the country would...
Despite accepting Bitcoin, El Salvador has repaid its $800 million bond
Nayib Bukele - the president of El Salvador - announced that the government had repaid its $800 million bond plus interest on the same day it matured.
The bond settlement comes despite pessimistic views that the nation will face financial challenges due to its Bitcoin forays.
“We just paid in full”
El Salvador's political leader, who is one of Bitcoin's biggest supporters, announced the news on Twitter and regretted that most international media outlets had not disseminated the information. At the same time, they were among the first to doubt whether the country would be able to repay the $800 million bond due on January 23rd.
Last year, almost every legacy international news outlet said that because of our “ #Bitcoin Bet,” El Salvador would default on its debt by January 2023 (since we had an $800 million bond that matures today).
Literally hundreds of articles https://t.co/rEiK7K13U4
— Nayib Bukele (@nayibbukele) January 24, 2023
He specifically referred to the New York Times, whichclaimsin July last year that El Salvador's decision to buy Bitcoin on a macroeconomic level could harm its monetary network and prevent it from paying its debts. Bukele further explained that the bond was completed without the need to strike a deal with the International Monetary Fund (IMF).
Changpeng Zhao (CZ) – CEO of the world's leading crypto exchange Binance – congratulated El Salvador on fulfilling its financial obligations.
Also the country's Finance Minister – Alejandro Zelaya Confirmedthe multi-million dollar bond payment:
“Unfortunately, due to the disinformation campaign by some national and international media outlets, we announce that on this date we have completed the payment of the 2023 Bonds of $800 million plus interest.”
According to reports, the presidential press officetoldReuters said the government recently paid $604.1 million and interest of $23.4 million and completed two more transactions in 2022.
El Salvador: the land of Bitcoin
El Salvador legalized Bitcoin in September 2021, and its authorities have continued to provide support during the ongoing bear market.
El Salvador has also used the challenging macroeconomic situation as an opportunity to purchase additional quantities of the digital asset. Latest data shows it holds 2,381 BTC, but the number could be higher since President Bukelepraisedthat the government will buy one Bitcoin per day in mid-November. However, there is no information about whether the buying spree is going as promised.
The nation is currently sitting on significant paper losses due to the devaluation of the cryptocurrency market. El Salvador spent over $103 million over the years to accumulate its stockpile, which is now worth almost twice as much.
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