British media: bet Bitcoin, Salvador Stress Mountain

Broadcasting Corporation's website on June 16th, original topic: Bitcoin: Does Salvador's cryptocurrency gambling be rewarded? The recent collapse of cryptocurrency prices such as Bitcoin is affecting investors around the world, including the Salvador administration. This Chinese American country has injected huge sums of money into Bitcoin and listed it as a legal currency 9 months ago to encourage the public to use it in daily transactions. From small jewelry, fried corn cakes to gasoline, and even houses, people can buy almost anything in Salvador. Shopping with cryptocurrencies at roadside stalls and large chain stores is an extraordinary experience.

Beginning with "Bitcoin Beach"

The recent collapse of cryptocurrencies has caused more questions about the Salvado government Bitcoin policy, especially the government uses nearly $ 100 million public funds to purchase bitcoins. Today, the value of 2,300 Bitcoin purchased by the country has fallen to half the time when it was purchased, but the Minister of Finance disagreed with criticism and claimed that "the fiscal risk was extremely small."

Salvador's "Bitcoin Movement" began with surfing and fishery town in the south of the country. In 2019, an anonymous donor began to provide Bitcoin to local cryptocurrency enthusiasts, and there have been many donations since then. No one admits to knowing who he is. The premise of holding these digital currencies is that they cannot be exchanged for US dollars. The idea is to build the world's first cycle of bitcoin economy. People can pay with Bitcoin and make a living.

This is a radical idea. In other parts of the world, Bitcoin can be used for online shopping, but in addition to one of the few fashionable cafes or one -time projects, it is impossible for people to use it on the street. So far, Elson has received a Bitcoin worth about 350,000 US dollars from the donor. This is not a small money for this diluted but beautiful town. Today, this is called "Bitcoin Beach".

The application is still uneven

Katerina is one of the first beneficiary of this wave of Bitcoin. Two years ago, she studied for life -saving training courses. Organizers use Bitcoin to pay trainees for transportation and meals. "Then, we worked as a 6 -month -old lifeguard and received the salary paid by Bitcoin," she said. Some merchants in Elson said their turnover rose by 30%, because, driven by the cryptocurrency channel of video websites, some tourists were attracted by the novelty of Bitcoin consumption.

However, Bitcoin's application in Salvador is still uneven. The farther from the "Bitcoin Beach", the less likely to be able to shop with this digital currency. In the "Bitcoin Beach", the merchants who received Bitcoin were slightly more than half, but after driving to St. Salvador, the capital of St. Salvador, to the north, this ratio was only about 1/4.

The Salvador administration said it did not plan to force enterprises to accept Bitcoin, so far limited to providing incentives. Although in this country, cash is still very important. More than half of the Salvador has no bank account, but President Bakl has injected $ 200 million in public funds into the Bitcoin wallet application "Chivo" for subsidies. Anyone who downloads the APP can get a Bitcoin worth $ 30 as a registration fee. This may explain why the APP has been downloaded 4 million times in a country with a population of more than 6.5 million. However, many people use "Chivo" to conduct US dollars rather than Bitcoin transactions, such as people working in foreign countries send money to domestic relatives. There are signs that after the initial interest increase, people are now reducing the use of the app.

President wants to build "Bitcoin City"

The International Monetary Fund has been urging El Salvado to take back the decision to list Bitcoin as a legal currency, arguing that Bitcoin is too unstable. Local economists such as Tatiana Mallumine are becoming more and more worried. Mallor Quina said that the Salvador government did not use enough funds to help the disadvantaged groups, so they should not adventure to inject public funds into cryptocurrencies. She also believes that the relevant practice lacks transparency. "We don't know when they or what money they used to buy Bitcoin." However, Salvador Tourism Minister Merraina Barters insisted that although the value of Bitcoin is falling, the Salvado has confidence in the president.

Now, Salvador wants to go further. President Bakle has announced a plan to build a new city- "Bitcoin City" at the foot of a volcano. He hopes to raise funds by selling $ 1 billion in "volcanic bonds". Officials said they were confident that they could raise funds and repay the imminent US $ 800 million foreign debt. But as the government continued to bet on Bitcoin, the decline in cryptocurrencies increased sharply. (Author Joe Teddy, translated by Ding Yan)

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