El Salvador’s president wants to buy back $1.6 billion in sovereign debt as the country’s finances become increasingly strained.
In a July 26 post, President Nayib Bukele said he sent two bills to the National Assembly to authorize the financing of government bond purchases. He further shared that the bond offering, which is completely transparent, open, and voluntary, will begin six weeks at market prices.
This can be seen as a move to reassure the public opinion of President Nayib Bukele when he has “bet” to invest in Bitcoin quite a lot in the past time. At press time, El Salvador is holding 2,381 BTC with an average purchase price of $45,000 and recording a loss of 48.52% or $52 million.
Besides, El Salvador’s finance minister, Alejandro Zelaya, said that the President’s offer was a good sign of the country’s liquidity and proof that El Salvador wants to continue to be a member of the traditional financial system.
The skepticism raised by Mr.James Bosworth is based on the argument after the President promised investors a Bitcoin City powered by volcanoes and bonds backed by BTC, all so far.