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El Salvador’s $329 million bet on Bitcoin’s potential to transform its economy is facing sharp criticism, as a new report by human rights group Cristosal raises questions about the venture’s financial prudence and transparency<\/p>\n<\/div>\n<\/div>\n
El Salvador’s ambitious move to adopt Bitcoin as legal tender has faced increased criticism as a new report<\/a> suggests the country has spent approximately $329 million on the project with very limited success.\u00a0<\/p>\n Released by human rights watchdog Cristosal, the report details the costs associated with the country’s Bitcoin adoption, including infrastructure setup and related incentives. This comes at a time when the global inflation rates are spiking and concerns are mounting over the lack of transparency and effectiveness of El Salvador’s crypto experiment<\/a>.<\/p>\n The report is based on limited publicly available information, primarily from President Nayib Bukele\u2019s Twitter account, legislative records, and U.S. judicial proceedings. It itemizes the $329 million expenditure, with $150 million allocated to the Bitcoin Trust (Fidebitcoin), $30 million for welcome bonuses in the Chivo Wallet, $23.3 million for a crypto-friendly project, and $121 million for purchasing Bitcoin. Another $4.7 million was spent on contracting Athena for 200 Chivo ATMs<\/a>.\u00a0<\/p>\n Cristosal criticized the government for the lack of fiscal oversight, questioning the source of the funds and the legality of such financial operations conducted without public supervision or transparency.<\/p>\n Despite President Nayib Bukele\u2019s initial enthusiasm for the project as a means to boost the country’s economy and streamline remittances, the public has been less than eager to embrace cryptocurrency<\/a>.\u00a0<\/p>\n Recent data revealed that only 1% of remittances between January and July this year were processed through the government\u2019s Chivo digital wallet. A May poll by the Central American University indicated that 71% of Salvadorans do not believe that Bitcoin has improved their family’s financial situation.<\/p>\n Bitcoin’s value has dropped from about $45,000 to just over $25,500 over the last two years, adding to public skepticism.<\/p>\nA human rights group highlights financial details<\/strong><\/h2>\n
Salvadorans are slow to adopt Bitcoin<\/strong><\/h2>\n