Crypto is all about privacy. But maybe El Salvador is taking it too far.
In the fall of 2021, President Nayib Bukele ushered in a movement to make Bitcoin legal tender in his country (along with the US dollar). This proclamation was widely celebrated as a watershed moment in crypto adoption. The government of El Salvador announced on Twitter (because, of course) each time they purchased more Bitcoin for the national treasury. Yada, yada, yada… Then came the big crypto crash in early 2022.
Where does the country’s ledger stand now? Who knows. The main bank BANDESAL claims this knowledge is a matter of national security, and is keeping the numbers secret.
Based on their Twitter announcements over the past year, El Salvador has purchased over 100 million dollars worth of Bitcoin. Given that the value of Bitcoin has fallen by over 50% over the past year, watchdogs estimate that El Salvador now has on 45 million dollars worth of Bitcoin.
This whole situation reads like a strongly cautionary tale for governments.
Read more about this topic at Cointelegraph – one of my favorite sites to find crypto human interest stories (and gossip).
The history of El Salvador and it’s love affair with crypto is fascinating! This includes building a cryptocity at the base of a volcano, and harnessing said-volcano’s energy to mine for Bitcoin. For more information about this sensational saga, consider reading this feature piece by David Z. Morris available at Coindesk.
