El Salvador government bonds are being sold after Bitcoin legalization

El Salvador government bonds are being sold after Bitcoin legalization

Protests, technological glitches, a government bond collapse and a sharp drop in the price of BTC marked the first day of El Salvador's adoption of Bitcoin as legal tender.

According to experts, by the end of Bitcoin Day, the poorest country in Latin America had lost $3 million. The government bond market reacted with a massive sell-off. Currently, short-term debt instruments have higher yields than deferred debt securities. Sellers are putting pressure on the market, trying to sell risky government bonds. This situation could threaten a recession and the impossibility of servicing the national debt.

The President of El Salvador, Nayib Bukele, called the market decline a “discount,” which allowed the country to buy another 150 bitcoins, as a result of which the total stock of the first cryptocurrency increased to 550, and accused the International Monetary Fund of helping engineer the price collapse.

 “Thanks for the failure @IMFNews. We saved a million on printing paper." 

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