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?

Actually on paper committing their bitcoin to generate passive income sounds like a good choice, especially since the country’s economy may benefit from increased cash flow but from my perspective it’s probably not that straightforward. First people might be wary about the risk. If the lending platform fails or the market crashes they could lose their assets also politically, they might not want to take a step that feels like gambling with national reserves. Even if earning approximately 59 million a year could help with their budget or debt the risk can feel too large for something currently considered as experimental on a national basis.

Nirmiti

Posts

Merits