El Salvador, the first country to use Bitcoin as a legal tender, earlier this month passed another legislation to establish a legal framework for a Bitcoin-backed bond known as Volcano Bond. Through this bond El Salvador plans to pay its sovereign debt, sponsor the Bitcoin city construction and create Bitcoin mining infrastructure.
Today, the country’s president Nayib Bukele confirmed via Twitter post that El Salvador has completely paid its $800 million Eurobond repayment which was due in January 2023. This comes after the country was caught into major backlash following its Bitcoin bet. Back then even the International Monetary Fund (IMF) had argued that the country’s adoption of Bitcoin as a legal tender will lead to huge volatility.
El Salvador Pays Bitcoin Debt
On the other hand, when FTX collapsed the crypto market had a huge downfall where Bitcoin dropped more than 50%. This raised a concern among investors asking whether El Salvador can pay its next payment which was due on January 24, 2023. However, amidst the slight market pull back, those comments were shut when El Salvador repaid its $800 million debt along with the interest.
Nevertheless, president Nayib Bukele also slashed mainstream media in the US for not reporting such an important event. He claimed that last year when the country adopted Bitcoin as a legal tender, most of the media stated the country would go on default in Jan 2023. The president has also mentioned a few links to these kinds of articles and one such particular mention was New York Times articles.
Currently, Bitcoin is selling at $22,519 after a drop of 1.57% over the last 24hrs. Bitcoin’s immediate resistance lies at $22,600 while the support is positioned at $22,400.