Bitcoin

<p>El Salvador outstanding $800-million bond has already been paid according to the country’s treasury minister. This allays fears that the government will fail in the wake of its decision to declare the volatile cryptocurrency Bitcoin legal tender.</p><h2 id="header-0">El Salvador ‘finalized’ payment on bond</h2><p>On Monday evening, Treasury Minister Alejandro Zelaya tweeted that the <a href="https://twitter.com/AlejandroZelay9/status/1617710130673467397" rel="noopener noreferrer nofollow">government had finalized payment</a> on a bond that was set to mature this week.</p><p>The government still owes $367 million in addition to interest on an $800 million bond due in January 2025.</p><p>Fears grew among El Salvadorans that the government would fail on its debts for this year as President Nayib Bukele gambled on Bitcoin. El Salvador is the <a href="https://micky.com.au/central-bankers-flock-to-el-salvador-to-discuss-btc/" rel="noopener noreferrer nofollow">first nation to recognize Bitcoin</a> as a legal tender.</p><p>In a tweet announcing the repayment of the 2023 bond, Zelaya called out the skeptics.</p><h2 id="header-1">Making Bitcoin legal tender amid calls to rescind decision</h2><p>The minister of the treasury said that his office repaid $196 million in debt by purchasing a portion of the bond maturing this week. The debt was made by preceding administrations between 1999 and 2004.</p><p>El Salvador secured an agreement with the Central American Bank for Economic Integration for a $350 million loan earlier this month. It was unclear, however, if this loan assisted the government in paying down the bond.</p><p>In January 2014, the International Monetary Fund requested that the government rescind its decision to recognize Bitcoin as legal cash. Bukele declined, and the government has spent more than $106 million on the cryptocurrency, the value of which plummeted over the last year.</p>

El Salvador paid $800-million bond amid making Bitcoin legal tender

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