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El Salvador's $425 million bitcoin experiment isn't saving the country's finances

Million, Countrys, Saving, Finances, Country, Salvador, Debt, President, Economic, Salvadors, Muci, Experiment, Bitcoin1 min read

El Salvador's economic growth has plummeted and its deficit remains high. The country's debt-to-GDP ratio is set to hit nearly 87% this year. The price of bitcoin has fallen more than 70% from its November 2021 peak, and more than 55% from the time President Nayib Bukele announced his plan. The government has an unrealized paper loss on bitcoin of around $50 million, which the finance minister notes is less than 0.5% of the national budget. "The country is sleepwalking into a debt default," said Frank Muci, a policy fellow at the London School of Economics. Source

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