Despite being the first nation to accept bitcoin as legal tender, El Salvador’s exposure to cryptocurrencies, such as Bitcoin (BTC), is negligible, according to Dante Mossi, Chairman of the Central American Bank for Economic Integration (CABEI).
Prior to a bond payment due in late January 2022, the multilateral lender gave El Salvador $450 million in December 2022. It is significant that the bank has aided the nation by supplying the majority of the money required for debt repayment.
Mossi said that El Salvador’s exposure is “very small — it’s not significant” in reality.
We’ve seen this exposure and think it’s very small — it’s not significant. We are interested in investors also knowing the real situation in El Salvador.
President Nayib Bukele declared in November that the nation would “start buying one bitcoin every day tomorrow.”
Until that point, the nation had purchased 2381 BTC at an average price of $45004, resulting in a loss of 63.2% on the BTC transaction, according to Todayq’s tab of El Salvador’s BTC purchases.
According to Mossi, the International Monetary Fund (IMF) would carry out its Article 4 duty and give El Salvador a macroeconomic analysis and recommendations.
Additionally, CABEI worked with the government of El Salvador to produce data on debt sustainability, including cryptocurrency disclosure, that would be useful for the IMF evaluation. The bank further stated that “the use of the proceeds will be checked in six months” and prohibited the nation from purchasing any digital assets with the freshly supplied $450 million.