El Salvador’s President Nayib Bukele hailed his country’s investment in bitcoin as a success after its value surpassed $100,000 for the first time. The government’s reported investment now stands at over $600 million. Bitcoin has rallied since Donald Trump’s election victory, with the cryptocurrency’s value falling below $17,000 two years ago.
Bukele blamed his opposition for causing many Salvadorans to miss out on the gains, while also criticizing street protests in 2021 when bitcoin was made legal tender. The government offered $30 in bitcoin to those who signed up for digital wallets, but many quickly cashed out.
Elon Musk praised Bukele’s move on social media, while former Central Bank President Carlos Acevedo credited the administration’s success with Trump’s election, citing market optimism. However, Acevedo noted that the cryptocurrency’s volatility remains a risk.
The average Salvadoran does not use bitcoin, but some have invested in it before. Many, like worker Esteban Escamilla and grocery shopper Josefa Torres, did not hold onto their initial $30 investment due to lack of resources. The International Monetary Fund (IMF) has recognized the need for further efforts to enhance transparency and mitigate potential risks from the bitcoin project.
Source: https://apnews.com/article/bitcoin-elsalvador-bukele-musk-trump-5be81d375da5bbce883008b0799c0c1a