Foreign media previously reported that with the weakening of the cryptocurrency market, El Salvador (El Salvador), which has repeatedly purchased bitcoins with national power, has become more financially constrained. Many people are worried about the outbreak of debt default due to debt repayment.
However, that may not be the case in reality. President Nayib Bukele recently posted on Twitter that El Salvador has paid off its $800 million debt in full with interest.
Under the promotion of President Bugelei, El Salvador became the first country in the world to adopt Bitcoin as legal tender in September 2021, and has subsequently purchased Bitcoin many times. However, those investments have been almost halved so far.
According to NayibTracker data, since September last year, El Salvador has spent a total of about US$109.5 million to buy 2,516 bitcoins, but due to the crypto winter, the value of these bitcoins has now shrunk by US$57.9 million.
On the other hand, El Salvador’s move to list bitcoin as a legal tender has prompted credit rating agencies such as Fitch to downgrade El Salvador’s credit rating, which means that it will become increasingly difficult for the country to issue foreign debt.