By Shelly Melancon (Switzerland)
According to reports, Morgan Stanley encourages its clients to purchase El Salvador bonds. Meanwhile, the latest crypto market decline has affected the performance of the bonds.
Furthermore, the country’s bet on BTC to skyrocket has not yielded a result also. However, the country continues to buy the dip with hopes of higher profit when it rises.
As stated by Bloomberg, the bonds of El Salvador have performed terribly in 2022. This is due to the bloodbath in the crypto industry lately.
El Salvador’s Bonds Dips To 28 Cents
According to Bloomberg, the global leader of emerging-market sovereign credit strategy in Morgan Stanley made a revelation recently. The leader, Simon Waever, said markets are undervaluing the possibility of an autarky scenario in El Salvador.
Also, Waever said there is no form of restructuring ongoing in the country to turn the tides. Meanwhile, the country’s 2027 bonds have dipped recently to about 28 cents.
Globally El Salvador is known for its BTC buying spree. The country appears to be following the footstep of MicroStrategy, another BTC proponent.
While only a few countries have adopted BTC as legal tender, others have licensed it as a financial asset. Besides, El Salvador continues to take advantage of the bear market.
The country has added more BTC to its crypto vault since the dip. Lately, Nayib Bukkele, El Salvador’s president, bought over 80 BTC.
Bukkele continues to advise users to exercise patience amid the crypto market crisis. According to the nation’s finance minister, the market crash has minimal financial risk.
El Salvador’s Bitcoin Adoption
Last year, El Salvador shocked the world after it adopted BTC as a legal tender. While members of the crypto ecosystem were impressed, others voiced their disapproval.
Meanwhile, the recent crypto market crash has affected the country’s BTC reserve. However, the president remains bullish on crypto as the country bought more Bitcoin recently.
Furthermore, some global institutions have attacked the decision of El Salvador. This includes the IMF (International Monetary Fund) and WTO (World Trade Organization).
Both international organizations have advised the country to drop BTC as a currency. They cited its price instability and current crypto market crisis as proof.
Meanwhile, the action of El Salvador has pushed a country in Africa to adopt BTC. The Central African Republic became the first African nation to legalize BTC in 2022.
Also, global institutions have questioned the actions of the country. Although BTC has its benefits, institutions are now wary of its volatility, given the recent crypto crisis.
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