El Salvador’s Finance Minister ‘Laughs off’ Claims of USD 40M Bitcoin ‘Losses’

Bitcoin Economics El Salvador Investing

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated: 

June 26, 2023 06:54 EDT

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

El Salvador’s Minister of Finance Alejandro Zelaya says he is “laughing off” international media reports that claim the nation’s bitcoin (BTC) adoption plans could scupper the economy and that they have left a USD 40 million hole in national finances.

The minister was speaking at a press conference, where journalists asked him about a report from the German media outlet Deutsche Welle that claimed that the economy was being “dragged down by fiscal risk to the tune of USD 40 million.”

Zelaya called the report and others like it examples of “biased” journalism, and added, per ElSalvador.com:

“This is a clear criticism of bitcoin, not El Salvador. El Salvador is what interests them the least here. […] So when they say that El Salvador’s fiscal risk, due to bitcoin [adoption] is very high, all it does is make me laugh. And I think any serious economist would do the same, because it is an extremely superficial analysis. And they speak from ignorance.”

Zelaya also hit out at critics who have focused on “losses” calculated on the basis of BTC market prices at the time of purchase and current market trends, as bitcoin has slid toward the USD 20,000 mark.

The finance chief stated that even if the “losses” did amount to USD 40 million, this would be a mere drop in the ocean compared to the sums that former Salvadoran Presidents Mauricio Funes and Antonio Saca had reportedly embezzled from the national economy.

He stated that the risks involved with BTC investment were “extremely minimal, and added:

“They say that Bitcoin losses can be USD 40 million, but how much did Funes steal? USD 351 million. How much did former President Saca steal? USD 300 million.”

He also pointed to alleged “USD 500 million” financial irregularities surrounding the El Chaparral hydroelectric plant project, claiming that the “experts” had not chosen to identify this project “as a financial risk.” 

At 11:42 UTC, BTC is trading at USD 21,994. It’s down 7.6% in a day and 30% in a week.

____

Learn more: 
– El Salvador-hosted ‘44-nation Bitcoin Conference’ Not Quite a Nothing Burger
– Critics Say El Salvador Could Default on Conventional Debts Before it Even Issues Bitcoin Bonds

– Bukele Showcases Bitcoin City Plans and ‘Buys the BTC Dip’ Amid Stark Warning
– 2 in 10 People in El Salvador Still Using Government’s Chivo Bitcoin App – Survey

– ‘Developing Economies’ Tracking El Salvador’s Bitcoin Moves with Interest
– Paraguay: Bitcoin & Crypto Mining Bill Passes Senate, Heading to Lower House