Human

Bitcoin

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<p>El Salvador's ambitious move to adopt Bitcoin as legal tender has faced increased criticism as <a href="https://twitter.com/Cristosal/status/1701639691680743443" rel="noopener noreferrer nofollow">a new report</a> suggests the country has spent approximately $329 million on the project with very limited success.&nbsp;</p> 
<p>Released by human rights watchdog Cristosal, the report details the costs associated with the country's Bitcoin adoption, including infrastructure setup and related incentives. This comes at a time when the global inflation rates are spiking and concerns are mounting over the lack of transparency and effectiveness of El Salvador's <a href="https://u.today/imf-not-happy-about-el-salvadors-bitcoin-bombshell" rel="noopener noreferrer nofollow">crypto experiment</a>.</p> 
<h2 id="a-human-rights-group-highlights-financial-details">A human rights group highlights financial details</h2> 
<p>The report is based on limited publicly available information, primarily from President Nayib Bukele’s Twitter account, legislative records, and U.S. judicial proceedings. It itemizes the $329 million expenditure, with $150 million allocated to the Bitcoin Trust (Fidebitcoin), $30 million for welcome bonuses in the Chivo Wallet, $23.3 million for a crypto-friendly project, and $121 million for purchasing Bitcoin. Another $4.7 million was spent on contracting Athena for 200 <a href="https://u.today/11-million-salvadorans-now-using-chivo-bitcoin-wallet-presidents-optimistic" rel="noopener noreferrer nofollow">Chivo ATMs</a>.&nbsp;</p> 
<p>Cristosal criticized the government for the lack of fiscal oversight, questioning the source of the funds and the legality of such financial operations conducted without public supervision or transparency.</p> 
<h2 id="salvadorans-are-slow-to-adopt-bitcoin">Salvadorans are slow to adopt Bitcoin</h2> 
<p>Despite President Nayib Bukele’s initial enthusiasm for the project as a means to boost the country's economy and streamline remittances, the public has been less than eager to embrace <a href="https://u.today/el-salvadors-portfolio-coming-closer-to-breaking-even" rel="noopener noreferrer nofollow">cryptocurrency</a>.&nbsp;</p> 
<p>Recent data revealed that only 1% of remittances between January and July this year were processed through the government’s Chivo digital wallet. A May poll by the Central American University indicated that 71% of Salvadorans do not believe that Bitcoin has improved their family's financial situation.</p> 
<p>Bitcoin's value has dropped from about $45,000 to just over $25,500 over the last two years, adding to public skepticism.</p> 
<p>El Salvador’s crypto <a href="https://u.today/el-salvadors-first-national-bitcoin-office-opens" rel="noopener noreferrer nofollow">initiative</a> was a high-stakes gamble that has yet to pay off, receiving both international skepticism and domestic scrutiny.</p>

$329M Bitcoin Fail: Human Rights Group Lambasts El Salvador's Bet

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