Quote from: Riceandbean on June 03, 2025, 04:51:42 PM

In the past week (as of june 2 2025), El Salvador has purchased a total of 7 bitcoins, and 30 in the past 30 days, indicating that it continues to implement the "daily purchase" strategy.

But they borrowed $1.4 billion from the IMF in December last year, so I feel that they used the loan money to buy bitcoins, even though they promised the IMF not to use public funds to buy bitcoins.

Then I have a question, that is, the current bitcoin price is so good, why doesn't El Salvador pledge bitcoins to lending platforms to obtain an annualized rate of return, which is about 6% to 9%, and they have 6188 bitcoins, worth 657,911,721USD, and can earn 59 million USD in interest each year.
How much help does this have for the El Salvadoran economy?

You are right, El Salvador easily could gain a 6‑9% reliable yield & earn $40–60 million per year. It is very possible. But those 6-9% return is not totally risk free, is it? there are always regulatory risks caused lending section introducing smart-contract & counterparty.

On the other hand, they are using legal loopholes to buy bitcoin, but IMF is really strict over its conditions, El Salvador must obey some rules for the $1.4 B loan deal. As part of the loan deal, they must freeze public Bitcoin holdings also halt Chivo wallet purchases. So govt are bound by the rules to move those Bitcoins to a lending platform.

Apart from this, Bitcoin Office is a separate entity, and they have its own rules. so the govt can’t officially use those BTC for lending purposes. if I make it simpler, it is actually a separate govt-owned entity, not the main treasury, so it is really foggy that using those coins for lending could run into legal or regulatory issue.