El Salvador’s pioneering adoption of Bitcoin as legal tender is facing intensified criticism following a report by human rights group Cristosal suggesting the country has spent roughly $329 million so far on the controversial crypto project.
The report details El Salvador’s Bitcoin expenditures based on limited public information from sources like President Nayib Bukele’s Twitter and legislative records. Major costs include $150 million allocated to the Bitcoin Trust, $30 million for Chivo wallet signup bonuses, and over $120 million for purchasing Bitcoin reserves.
Cristosal condemned the lack of fiscal oversight and transparency around the government’s Bitcoin funding and operations. This criticism comes as El Salvadorans have been slow to embrace crypto, with only 1% of remittances going through the Chivo wallet and 71% of citizens reporting no benefit from Bitcoin in a recent poll.
With global inflation surging and Bitcoin’s value down nearly 50% from its peak, El Salvador’s costly crypto experiment is facing mounting scrutiny. The report’s estimate of over $300 million spent raises concerns about the economic rationale and effective use of public funds for the project.
By adopting Bitcoin as a legal tender without public consultation or accountability, El Salvador took a high-stakes gamble. So far, the government’s lack of transparency and the public’s reluctance to adopt crypto point to limited gains for significant public expenditure. The report adds to doubts about the viability and oversight of El Salvador’s unprecedented Bitcoin adoption.
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