El Salvador’s President lashes out at mainstream media over Bitcoin attack

El Salvador became the first country in the world to adopt Bitcoin as legal tender. Fast forward to this year, the crisis worsened in the already battered crypto industry. But President Nayib Bukele plans to double down further.

After promising that the government would buy one Bitcoin every day going forward, despite the meltdown, the Bukele administration sent a bill to El Salvador’s Congress to enable it to sell $1 billion in “volcano bonds” – government debt, denominated in USD and pay out 6.5% interest per year to bondholders – to buy more of the crypto-asset and build the hyped “Bitcoin City”.

The dramatic collapse of FTX, a once-prominent crypto exchange founded by Sam Bankman-Fried, has provided endless fodder for both the press and longtime crypto critics. And while negativity continues to dominate coverage of Bitcoin in the Central American country, the national currency crisis appears to be worrying.

Bukele reacts to critics

The latest reports suggest that the country is on the brink of a debt crisis. With Bitcoin falling over 70% since September 2021, El Salvador’s $300 million “Bitcoin ‘Revolution'” may be in jeopardy. However, Bukele lashed out at the mainstream media over double standards and continued to chirping,

“This article is full of lies, which is standard for Bloomberg… But what is most surprising is how the mainstream media suddenly cares so much about El Salvador. Corrupt politicians looted $37 billion from our treasury and they never wrote a single article.”

Bukele has faced serious backlash from the International Monetary Fund (IMF). On the other hand, rating agency Moody’s showed that El Salvador’s Bitcoin trade raised its risk profile. Overall, the country’s Bitcoin program experienced several logistical and technical failures, particularly with the Chivo wallet.

Furthermore, there were extensive reports of identity theft following the release of the digital wallet. Many Salvadorans claimed their $30 sign-up bonus had been drained before they could access the system.

Promote Bitcoin Strategy

The latest comments come days after El Salvador’s government announced a new crypto initiative called the National Bitcoin Office (ONBTC) to oversee all local projects related to the asset. The ONBTC is expected to function as a “specialized administrative entity, with functional and technical autonomy within the Presidency of the Republic.”

The government also tabled a bill last month that aimed to set up regulations for the domestic crypto industry by establishing a designated commission.