Critics say El Salvador’s Bitcoin launch is not transparent

The media claim that El Salvador’s bitcoin adoption has remained a mystery so far. They complained that the government failed to provide an explanation of how they spent the money they shared on buying tokens.

Lack of Transparency Blighting El Salvador's Bitcoin Adoption, Critics Say

Critics say El Salvador’s Bitcoin launch is a lack of transparency

In an EFE report (published by El Diario de Hoy) on the occasion of the three-month anniversary of the law officially tendering BTC in El Salvador, the media company accused the government of “lacking transparency in the management of BTC” for buying Bitcoin “.

Aside from President Nayib Bukele’s tweets on the matter, the government has very little information about the platform it bought the coins on and what happens when commissions are paid from the treasury.

To date, Bukele has announced the purchase of 1,370 BTC, spending “at least $ 168.9 million in Salvadoran government money,” commented EFE.

The report added that the public still doesn’t know how these coins are budgeted, who exactly has access to them, or how the funds will be managed.

There are also more negatives to Bukele’s ambitious plan to create a Bitcoin-themed city with no taxes but only VAT on sales – all paid for use.

The news agency cited economist Ricardo Castaneda, country coordinator for El Salvador and Honduras at the Central American Institute for Fiscal Studies (Icefi), as “risky” and “desperate measure”.

El Salvador crypto debut is a lesson in bitcoin price volatility — Quartz

The report comes at a time when the US is accusing the Bukele regime of negotiating with criminal gangs – an allegation that has been leveled against it by media critics for some time and has been leveled against it for several years. The allegation is likely to further damage the country’s relationship with the International Monetary Fund (IMF), which has largely been dependent on monetary support for years.

Bukele is determined to break that loop, however, and some believe that his pivot on BTC, despite his claims, could be part of a grand plan to de-dollarize the Salvadoran economy.

Castaneda is quoted as saying:

“If BTC bonds and Bitcoin City projects go well, President Bukele will set an example and be able to tell multilateral organizations and the international community that we don’t need them. But if that is wrong, the entire population will be lost. “

Bitcoin rollout in El Salvador is not very popular

The economist calls the project an “experiment” and, like others before him, warns that El Salvador should inevitably “create a whole institutional architecture to make it work”.

He added, however, that it would be interesting to see how the conventional financial system “reacts” to the project.

EFE went on to say that the government Chivo app and BTC adoption were greeted with “low Salvadoran acceptance” and repeated reports of alleged identity theft by the opportunists who download and activate the app.

The economist concluded that the relatively small payments on the bonds were part of a calculated “bet” on behalf of the President, stating:

“Bukele hopes that the buyers of these types of financial instruments will be such bitcoin aficionados that they will not be afraid to notice that there is a lot of risk in El Salvador and the financial situation is very complicated. The challenge is huge. “

El Salvador's world-first adoption of bitcoin endures bumpy first day |  Reuters

Meanwhile, a study by the Center for Citizenship Studies at Francisco Gavidia University found that 91% of the Salvadorans surveyed prefer USD over BTC, with just under 5% saying they prefer Bitcoin over the greenback.

But there were even more divisions when the same respondents were asked about the decision to adopt Bitcoin as legal tender: 35% said they were for it, 40% against, and the rest undecided.

Earlier surveys before the launch showed that more than 50% of those surveyed said they would not be able to move.

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