El Salvador’s BTC Purchase Data Cannot Be Made Public – Trustee
In September last year, the government of El Salvador made headlines when it announced that it would make Bitcoin legal tender in the country. This made El Salvador the first nation in the world to recognize Bitcoin as a legitimate currency.
Now, it has been revealed that El Salvador’s government has purchased Bitcoin to help stabilize the country’s economy. According to a report from Bloomberg, the government of El Salvador has purchased $150m worth of Bitcoin.
The purchase of Bitcoin by the government of El Salvador was made through a trustee, who has claimed that the information about the purchase cannot be made public. However, the trustee is concerned about the stability of the Bitcoin market.
The purchase of Bitcoin by the government of El Salvador is a sign of confidence in the future of cryptocurrency. With more and more countries and businesses recognizing Bitcoin as a legitimate form of currency, it is only a matter of time before the cryptocurrency becomes mainstream.
Why The Confidentiality?
The government of El Salvador has been tight-lipped about its recent purchase of Bitcoin, refusing to release any information about the transaction to the public. This has caused some concern, as the country has put a lot of faith in cryptocurrency.
However, a state development bank representative (BANDESAL) stated that the purchase information must be kept private. He said it is part of a $150 million trust fund meant to guarantee the convertibility of Bitcoin to dollars for El Salvador citizens and merchants.
Did El Salvador Waste Public Funds With Its Bitcoin Purchases?
The Autonomous Liquidity Fund of El Salvador (ALAC) has refuted the country’s development bank, BANDESAL, denial of purchasing Bitcoin (BTC) using public funds. BANDESAL emphasized that no information about the Bitcoin Trust could be publicly revealed by the trustee board of directors or any of its members to safeguard national interests.
However, ALAC claims otherwise. It also claims that the public has a right to know how those funds are used. Thus, El Salvador’s Bitcoin Trust (FIDEBITCOIN) has come under scrutiny after the country’s central bank, BANDESAL, refused to disclose information on the trust’s operations.
BANDESAL stated that disclosing such information would jeopardize national interests. El Salvador has purchased 2,301 BTC, worth approximately $45 million at current exchange rates. It might be time for the country’s authorities to justify its year-long Bitcoin purchases.
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