El Salvador's Bitcoin investments have proven to be lucrative, riding the wave of the recent cryptocurrency rally, as revealed by Nayib Bukele, the presidential candidate seeking re-election. <o:p></o:p>

Bukele, who recently stepped down from the presidency to focus on his campaign, disclosed that the country's Bitcoin investments have witnessed an upswing of 2.84 per cent, translating to a profit of $3.6 million. <o:p></o:p>

Emphasising a steadfast commitment to a long-term strategy, Bukele affirmed that the government has no plans to divest its Bitcoin holdings.<o:p></o:p>

The surge in Bitcoin's value, which soared above $42,000 on Monday, marked an extension of its impressive rally, boasting a 150 per cent increase in value throughout the year. El Salvador made history in 2021 by becoming the first country worldwide to embrace Bitcoin as legal tender. <o:p></o:p>

Nayib Bukele, a prominent figure in Salvadoran politics, currently leads the polls in the run-up to the February presidential election. His popularity is fuelled by his tough stance on crime, notably highlighted by the detention of tens of thousands of alleged gang members. <o:p></o:p>

If successful in the election, Bukele would secure a second consecutive five-year term, with the inauguration slated for June.<o:p></o:p>

(With inputs from Bloomberg)<o:p></o:p>

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El Salvador's Bitcoin investments have proven to be lucrative, riding the wave of the recent cryptocurrency rally, as revealed by Nayib Bukele, the presidential candidate seeking re-election.

El Salvador's Bitcoin investments have proven to be lucrative, riding the wave of the recent cryptocurrency rally, as revealed by Nayib Bukele, the presidential candidate seeking re-election. Bukele, who recently stepped down from the presidency to focus on his campaign, disclosed that the country's Bitcoin investments have witnessed an upswing of 2.84 per cent, translating to a profit of $3.6 million. Emphasising a steadfast commitment to a long-term strategy, Bukele affirmed that the government has no plans to divest its Bitcoin holdings. The surge in Bitcoin's value, which soared above $42,000 on Monday, marked an extension of its impressive rally, boasting a 150 per cent increase in value throughout the year. El Salvador made history in 2021 by becoming the first country worldwide to embrace Bitcoin as legal tender. Nayib Bukele, a prominent figure in Salvadoran politics, currently leads the polls in the run-up to the February presidential election. His popularity is fuelled by his tough stance on crime, notably highlighted by the detention of tens of thousands of alleged gang members. If successful in the election, Bukele would secure a second consecutive five-year term, with the inauguration slated for June. (With inputs from Bloomberg) WATCH WION LIVE HERE

El Salvador's Bitcoin investments surge: Bukele confirms profit amid cryptocurrency rally

Fourteen months after El Salvador became the first nation to adopt bitcoin as a legal tender, the bankruptcy of cryptocurrency exchange FTX and resulting crash in prices of other cryptocurrencies have pushed the country's leaders to announce the signing of a free trade deal with China.&nbsp;

El Salvador Vice President Félix Ulloa said that China had offered to buy country's $21 billion in foreign debt as part of free trade deal.

WATCH |&nbsp;<a href="https://www.wionews.com/videos/world-business-watch-el-salvadors-bitcoin-experiment-60-million-lost-525320">World Business Watch | El Salvador's bitcoin experiment: $60 million lost</a>

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As for conventional legal tender, the country had adopted US dollar as national currency in 2001. However, Salvadoran economists say that the debt financing from China would mean a definitive break from the US and move the country closer to China, Russia and Turkey.

China-El Salvador ties: On rise since 2018

In 2018, El Salvador ended its relationship with Taiwan. Following the strategically significant move in Beijing's favour, the Chinese agreed to build a stadium and a library in the country of 6.5 million people. Beijing also plans to convert the port of La Union into a logistics hub.

China-El Salvador trade deal: A compulsion for President Bukele

El Salvador has to pay €667m ($688m) for a Eurobond amortisation by January next year. Amortisation refers to the process of reducing or paying off a debt with regular payments. President Nayib Bukele had announced in the beginning of 2022 that the country would issue bitcoin-denominated bonds to pay off national debt. The President had famously forecasted that the price of bitcoin would reach $100,000.&nbsp;

However, the recent crypto crash has thrown President's Bukele's hopes of crypto-based rescue of country's economy into disarray. The bitcoin price currently hovers around $16,000.

ALSO READ |&nbsp;<a href="https://www.wionews.com/world/bitcoin-has-the-fifth-worst-collapse-in-financial-history-report-533494">Bitcoin plunges, records the fifth-biggest collapse in financial history</a>

Experts also say that the debt-financing from China doesn't come cheap.&nbsp;

“China acts as a payday lender, they make good money off of these deals,” Evan Ellis, a senior associate at the Washington DC based Centre for Strategic &amp; International Studies was quoted as saying by The Guardian. “But they often find a way to tie the loans to long-term commercial and strategic benefits opening the way for Chinese companies.”

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Fourteen months after El Salvador became the first nation to adopt bitcoin as a legal tender, the bankruptcy of cryptocurrency exchange FTX and resulting crash in prices of other cryptocurrencies have pushed the country's leaders to announce the signing of a free trade deal with China.

Fourteen months after El Salvador became the first nation to adopt bitcoin as a legal tender, the bankruptcy of cryptocurrency exchange FTX and resulting crash in prices of other cryptocurrencies have pushed the country's leaders to announce the signing of a free trade deal with China. El Salvador Vice President Félix Ulloa said that China had offered to buy country's $21 billion in foreign debt as part of free trade deal. WATCH | World Business Watch | El Salvador's bitcoin experiment: $60 million lost × As for conventional legal tender, the country had adopted US dollar as national currency in 2001. However, Salvadoran economists say that the debt financing from China would mean a definitive break from the US and move the country closer to China, Russia and Turkey. China-El Salvador ties: On rise since 2018 In 2018, El Salvador ended its relationship with Taiwan. Following the strategically significant move in Beijing's favour, the Chinese agreed to build a stadium and a library in the country of 6.5 million people. Beijing also plans to convert the port of La Union into a logistics hub. China-El Salvador trade deal: A compulsion for President Bukele El Salvador has to pay €667m ($688m) for a Eurobond amortisation by January next year. Amortisation refers to the process of reducing or paying off a debt with regular payments. President Nayib Bukele had announced in the beginning of 2022 that the country would issue bitcoin-denominated bonds to pay off national debt. The President had famously forecasted that the price of bitcoin would reach $100,000. However, the recent crypto crash has thrown President's Bukele's hopes of crypto-based rescue of country's economy into disarray. The bitcoin price currently hovers around $16,000. ALSO READ | Bitcoin plunges, records the fifth-biggest collapse in financial history Experts also say that the debt-financing from China doesn't come cheap. “China acts as a payday lender, they make good money off of these deals,” Evan Ellis, a senior associate at the Washington DC based Centre for Strategic & International Studies was quoted as saying by The Guardian. “But they often find a way to tie the loans to long-term commercial and strategic benefits opening the way for Chinese companies.” WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Crypto crash forces El Salvador into China's economic circle of influence

Lawmakers in&nbsp;Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services.

The bill opens the door to private and public use of crypto assets, and will make it possible for people to pay their taxes with cryptocurrencies. Experts warned it could heighten&nbsp;Panama's reputation as a place lacking financial transparency.

The legislation is broader in scope than measures passed by El Salvador, which last year made bitcoin legal tender, said independent lawmaker and promoter of the bill Gabriel Silva.

Also read |&nbsp;<a href="https://www.wionews.com/world/panama-says-three-ships-hit-by-russian-missiles-in-black-sea-since-start-of-ukraine-invasion-463051">Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion</a>

"We're seeing the emergence of many different types of crypto assets like works of art," he said. "That's why we didn't want to limit ourselves only to cryptocurrencies."

The bill covers the trading and use of crypto assets, issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when rights to an asset are converted into digital formats.

Under the new legislation,&nbsp;Panamanians may use crypto assets as means of payment for any civil or commercial operation not prohibited by law in the country.

Watch |&nbsp;Panama: Lawmakers approve bill to regulate cryptos

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Panama&nbsp;is on the European Union's list of tax havens, and Romain Dromard, chief executive officer at financial investment advisory firm K&amp;B Family Office, said the crypto bill would not help it appear more transparent.

"Panama&nbsp;was already in a bad position and these payment methods skip the due diligence processes that international organizations are asking&nbsp;Panama&nbsp;to embrace," he said.

The bill, which now passes to President Laurentino Cortizo to be signed, was approved in the assembly with 38 votes in favor, two abstentions and no votes against.

Belisario Castillo Saenz, chief executive officer of tokenisation firm Feänor Corp, argued that crypto assets could help the unbanked, given that internet penetration is high in&nbsp;Panama&nbsp;but only one in four people have bank accounts.

Also read |&nbsp;<a href="https://www.wionews.com/photos/february-23-in-history-first-mass-polio-vaccine-panama-canal-zone-and-more-365610">February 23 in history: First mass polio vaccine, Panama Canal Zone, and more</a>

The bill could also make banks that have created barriers to using cryptocurrencies more cooperative, said Jose Fabrega of CryptoSPA, a hub for crypto and blockchain services.

Still, K&amp;B's Dromard said the role banks will play under the new rules is unclear and forecast that it will take years for traditional institutions to use the assets.

In addition, small and medium businesses would not be able to switch to such highly volatile assets, he argued.

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Lawmakers in Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services.

Lawmakers in Panama's National Assembly on Thursday approved a bill to regulate the use and commercialisation of crypto assets in the Central American country renowned as a hub of offshore financial services. The bill opens the door to private and public use of crypto assets, and will make it possible for people to pay their taxes with cryptocurrencies. Experts warned it could heighten Panama's reputation as a place lacking financial transparency. The legislation is broader in scope than measures passed by El Salvador, which last year made bitcoin legal tender, said independent lawmaker and promoter of the bill Gabriel Silva. Also read | Panama says three ships hit by Russian missiles in Black Sea since start of Ukraine invasion "We're seeing the emergence of many different types of crypto assets like works of art," he said. "That's why we didn't want to limit ourselves only to cryptocurrencies." The bill covers the trading and use of crypto assets, issuance of digital securities, new payment systems and the tokenization of precious metals. Tokenization is when rights to an asset are converted into digital formats. Under the new legislation, Panamanians may use crypto assets as means of payment for any civil or commercial operation not prohibited by law in the country. Watch | Panama: Lawmakers approve bill to regulate cryptos Panama is on the European Union's list of tax havens, and Romain Dromard, chief executive officer at financial investment advisory firm K&B Family Office, said the crypto bill would not help it appear more transparent. "Panama was already in a bad position and these payment methods skip the due diligence processes that international organizations are asking Panama to embrace," he said. The bill, which now passes to President Laurentino Cortizo to be signed, was approved in the assembly with 38 votes in favor, two abstentions and no votes against. Belisario Castillo Saenz, chief executive officer of tokenisation firm Feänor Corp, argued that crypto assets could help the unbanked, given that internet penetration is high in Panama but only one in four people have bank accounts. Also read | February 23 in history: First mass polio vaccine, Panama Canal Zone, and more The bill could also make banks that have created barriers to using cryptocurrencies more cooperative, said Jose Fabrega of CryptoSPA, a hub for crypto and blockchain services. Still, K&B's Dromard said the role banks will play under the new rules is unclear and forecast that it will take years for traditional institutions to use the assets. In addition, small and medium businesses would not be able to switch to such highly volatile assets, he argued. WATCH WION LIVE HERE

Panama passes bill to regulate the use and commercialisation of crypto assets

The World Bank said on Wednesday it could not assist El Salvador's&nbsp;bitcoin&nbsp;implementation given environmental and transparency drawbacks.

"We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-legalises-bitcoin-as-other-nations-plan-similar-moves-390658">El Salvador legalises Bitcoin as other nations plan similar moves</a>

"While the government did approach us for assistance on&nbsp;bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings."

Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the Central American country had sought technical assistance from the Bank as it seeks to use&nbsp;bitcoin&nbsp;as a parallel legal tender alongside the US&nbsp;dollar.

El Salvador's government did not immediately respond to a request from Reuters regarding the World Bank's decision.

The minister also said ongoing negotiations with the International Monetary Fund had been successful, although the IMF said last week it saw "macroeconomic, financial and legal issues" with the country's adoption of&nbsp;bitcoin.

Also read |&nbsp;<a href="https://www.wionews.com/world/el-salvador-becomes-the-first-country-to-adopt-bitcoin-as-legal-tender-after-passing-legislation-390314">El Salvador becomes the first country to adopt bitcoin as legal tender after passing legislation</a>

Zelaya said on Wednesday the IMF was "not against" the&nbsp;bitcoin&nbsp;implementation. The IMF did not respond to a request for comment.

Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, the key to patching budget gaps through 2023.

On Wednesday, bonds sold off across the curve, with the 2032 issue down more than 2 cents at 96.25 cents on the dollar. The spread of Salvadoran debt to US&nbsp;Treasuries dipped to 705 basis points after hitting on Tuesday a four-month high of 725 bps.

"There is no fast track for a solution on an IMF program and even uncertainty on whether the&nbsp;bitcoin&nbsp;proposal is compatible with diplomatic US&nbsp;(or) multilateral relations," said Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York.

El Salvador this month became the first country to adopt&nbsp;bitcoin&nbsp;as legal tender, with President Nayib Bukele touting the cryptocurrency's potential as a remittance currency for Salvadorans overseas.

This month, Bukele also pulled out of an anti-corruption accord with the Organization of the American States, which dismayed the US&nbsp;government, as Washington looks to stem corruption in Central America as part of its immigration policy.

"The recognition of a 'Bukele' risk premium has probably done some permanent damage to investor sentiment," Morden said in her client note.

The market may be focusing too much on the news headlines, however, and not enough on the possibility of a deal with the IMF, said Shamaila Khan, head of EM debt strategies at AllianceBernstein in New York.

"It is important for El Salvador to get the IMF program done. If it was lost on them, they wouldn’t have the conversations," she said.

"Our view is too much risk is priced in at these levels."

The World Bank said on Wednesday it could not assist El Salvador's bitcoin implementation given environmental and transparency drawbacks. "We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email.

The World Bank said on Wednesday it could not assist El Salvador's bitcoin implementation given environmental and transparency drawbacks. "We are committed to helping El Salvador in numerous ways including for currency transparency and regulatory processes," said a World Bank spokesperson via email. Also read | El Salvador legalises Bitcoin as other nations plan similar moves "While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings." Earlier on Wednesday, Salvadoran Finance Minister Alejandro Zelaya said the Central American country had sought technical assistance from the Bank as it seeks to use bitcoin as a parallel legal tender alongside the US dollar. El Salvador's government did not immediately respond to a request from Reuters regarding the World Bank's decision. The minister also said ongoing negotiations with the International Monetary Fund had been successful, although the IMF said last week it saw "macroeconomic, financial and legal issues" with the country's adoption of bitcoin. Also read | El Salvador becomes the first country to adopt bitcoin as legal tender after passing legislation Zelaya said on Wednesday the IMF was "not against" the bitcoin implementation. The IMF did not respond to a request for comment. Investors have recently demanded higher premiums to hold Salvadoran debt, on growing concerns over the completion of the IMF deal, the key to patching budget gaps through 2023. On Wednesday, bonds sold off across the curve, with the 2032 issue down more than 2 cents at 96.25 cents on the dollar. The spread of Salvadoran debt to US Treasuries dipped to 705 basis points after hitting on Tuesday a four-month high of 725 bps. "There is no fast track for a solution on an IMF program and even uncertainty on whether the bitcoin proposal is compatible with diplomatic US (or) multilateral relations," said Siobhan Morden, head of Latin America fixed-income strategy at Amherst Pierpont Securities in New York. El Salvador this month became the first country to adopt bitcoin as legal tender, with President Nayib Bukele touting the cryptocurrency's potential as a remittance currency for Salvadorans overseas. This month, Bukele also pulled out of an anti-corruption accord with the Organization of the American States, which dismayed the US government, as Washington looks to stem corruption in Central America as part of its immigration policy. "The recognition of a 'Bukele' risk premium has probably done some permanent damage to investor sentiment," Morden said in her client note. The market may be focusing too much on the news headlines, however, and not enough on the possibility of a deal with the IMF, said Shamaila Khan, head of EM debt strategies at AllianceBernstein in New York. "It is important for El Salvador to get the IMF program done. If it was lost on them, they wouldn’t have the conversations," she said. "Our view is too much risk is priced in at these levels."

World Bank rejects El Salvador request for help on bitcoin implementation

At a time when several cryptocurrencies are crashing, Latin America’s El Salvador has become the first country in the world to adopt Bitcoin as legal tender, alongside the US dollar.

El Salvador approves Bitcoin as legal tender