SIGNS EL SALVADOR CONTINUING TO (RELATIVELY) BENEFIT FROM BITCOIN
With Bitcoin still mired more than 50 percent down from its all-time highs of late 2021, how is El Salvador managing to fare better than most of its central and South American neighbors?
It’s a matter of relativity.
With countries like Argentina seeing crippling devaluation of their currencies, El Salvador, which approved bitcoin as legal tender in 2021, has benefited in relative terms.
Though bitcoin has underperformed the expectations of many, it managed a substantial recovery in 2023 from 2022 lows under 20 thousand.
Notably, El Salvador has attracted “bitcoin tourism,” or visitors who come to get together with like minded crypto enthusiasts and spend some digital coin.
El Salvador has also continued to buy bitcoin along the way.
Some are pointing out positive effects, including news that Bitcoin-friendly Bond returns in El Salvador will reach 70 percent in 2023.
That rate of return outperformed the rest of emerging nations, Cointelegraph noted.
That performance is attracting the notice of investment bigs including JP Morgan, Eaton Vance, and PGIM Fixed Income.
El Salvador paid $800 million in debt in full before the due date, which restored investor confidence in the nation’s obligations.
President Nayib Bukele, who had led the campaign to legalize bitcoin for payment of debts in the country, despite heated opposition from global bodies like the IMF (International Monetary Fund), tweeted about the bond strength and institutional interest it has garnered: “I told you so.”