El Salvador’s bitcoin experiment turns into a real nightmare

We have already seen that bitcoin fever This happens not only between investors and miners, but it has also infected the country’s presidents and entire nations, as it did in El Salvador last year.

Let’s single out the Central African Republic (CAR) as the second country in history to adopt bitcoin as its national currency, following El Salvador’s adoption of the cryptocurrency last year.

Well, the current collapse that we are experiencing with cryptocurrencies, and from which even Bitcoin does not escape, is affecting these countries as it could not be otherwise. This country is currently is in serious danger of defaulting on debt to international financiers, as we managed to learn from El País.

Despite the ongoing struggle of its president, Nayib Bukele, to maintain financial stability (remember, this is the reason he switched to the dollar in 2001), The adoption of bitcoin now has not had a liberating effect on the country’s economy.

Now that the cryptocurrency market is collapsing, it seems It is becoming less and less likely that El Salvador will be able to make the next payment on its bonds if it defaults on its public debt. This would be a disaster for the country’s economy and the government’s ability to carry out basic functions.

Despite all this, Bukele continues to bet on them. Recently, on May 9, he bought 500 bitcoins, which is equivalent to about 14 million euros.

#bitcoin The city is going beautifully ❤️ pic.twitter.com/A6ay8aAREW

— Nayib Bukele (@nayibbule) May 9, 2022

To this we add that on the same day, the president tweeted about plans to build a bitcoin city near the volcanowith photos of him admiring his gold-painted uniform, as you can see in the tweet above.

The city, how could it be otherwise, pounced on him to see how, in this critical situation, he had fantastic plans. Let’s see what will happen in the end, although we do not predict a good future if the situation continues like this.