Following heavy stakes in Bitcoin, El Salvador faces crisis and turns to China for support

Photo: Nayib Bukele, President of El Salvador. By: Carlos Moronta/ Dominican Republic Presidency Surce: CC 鈥 Flickr

This led to increased criticism that had been raised over time for this decision; the coordinator for El Salvador of the Central American Institute for Fiscal Studies (ICEFI), Ricardo Castaneda, stated the following: “Unfortunately, when requesting information on how much has been invested in bitcoin, the answer is that such information does not exist or is reserved.”

Given the possible adversities that El Salvador may present, there is interest on the part of the People’s Republic of China to initiate a Free Trade Agreement (FTA) between the two countries. For its part, the Asian country proposed that it would pay El Salvador’s debt due in 2023, which oscillates around 667 million Euros. In view of the possible FTA agreement and paying off the 2023 debt, many experts have said that “nothing is for free” and that the People’s Republic of China must expect something in return, as argued again by economist Roberto Rubio: “China has given three donations to El Salvador; the construction of a kind of amusement park on the beach, a stadium that has not been built yet, and a library. These are investments that improve China’s image and, obviously, also that of our country.”

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Bio Bio Chile: La arriesgada jugada de El Salvador con China para afrontar cr铆sis por ca铆da del valor del Bitcoin.

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El Pa铆s: La ca铆da del bitcoin representa un 鈥榞olpe mortal鈥 para El Salvador.