Report: El Salvador's government bought Bitcoin with Covid relief funds

[Judi Lynn]

2 NOVEMBER 2023, 09:44 AMBY OM LABDE

When the covid-19 pandemic hit in 2020, El Salvador’s economy was on the brink due. The GDP was down 8% and its economy was struggling to survive strict lockdowns.

El Salvador got a lifeline when the Central American Bank for Economic Integration (BCIE) approved a $600 million loan in 2021. The loan was supposed to aid small businesses. However, an investigation by El Salvador’s government bought Bitcoin with Covid relief funds. However, an investigation by the Organized Crime and Corruption Reporting Project (OCCRP) uncovered that only a fraction of the funds were ever used to aid small businesses.

NEW: An investigative project by OCCRP & 10 partners found that Central America’s main regional development bank #CABEI has bankrolled projects that have enabled waste and corruption in one of the most unequal regions on Earth.👇https://t.co/GizAPra762

— Organized Crime and Corruption Reporting Project (@OCCRP) October 31, 2023

Where did the aid money go?
President Nayib Bukele diverted over $200 million to fund his pet project rather than using the aid as intended. He wants to make El Salvador the first country to successfully embrace Bitcoin as legal tender.

This controversial crypto scheme has drawn criticism since its introduction in 2021. International financial institutions like the IMF and World Bank have repeatedly warned the country’s government to reverse the legal tender.

Bukele has ignored and criticised all their warnings. However, the unveiling of this report is evidence of him crossing the line.

More:
https://news.todayq.com/report-el-salvadors-government-bought-bitcoin-with-covid-relief-funds/