El Salvador’s President Offers Recovery Plan
El Salvador’s President Offers Recovery Plan
Crypto

El Salvador’s President Offers Recovery Plan

By George Michael Belardinelli - 22 Aug 2022

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The President of El Salvador extends a helping hand to Lending Companies that have had solvency problems from investing badly in Bitcoin, wanting to implement a sort of Recovery Plan.

Nayib Bukele’s Recovery Plan for DeFi platforms in trouble

Nayib Bukele offers to help DeFi companies in trouble

 

The President of “The Land of Bitcoin,” Nayib Bukele, in a press conference also reported by Bitcoin Magazine, said he was determined to extend a helping hand to all those Lending Companies that had invested at the wrong timing (perhaps when BTC was $60,000) and find themselves with their legs cut off from the market. 

The President’s statements come after years in which in his term thanks to the Ley he managed to get the country he governs to adopt BTC as a state currency on par with the dollar. 

This move has greatly improved tourism with hundreds of thousands of people being fascinated by what is the closest example of the cryptocurrency world to come. 

While the country has attracted many enthusiasts, investors, and miners, it is also struggling with hyperinflation that brings the country to its knees almost as much as the stratospheric public debt it has accumulated. 

Bukele with a much-discussed monetary policy with the proceeds of taxes and by selling some unproductive assets has been accumulating BTC throughout his tenure convinced that the currency will run again and will be the tow that will lead the country out of the quagmire. 

The president has repeatedly hinted that a BTC at $100,000 would be the solution to the country’s debt and hyperinflation in one fell swoop. 

While a state, however, can put off its problems, corporations cannot always do so as effectively and often risk default. Thus Bukele said he was ready for the creation of a fund to bail them out. 

El Salvador’s President’s plan for struggling companies

The Lending Companies benefiting from the operation will be supported by what could be called a Recovery Plan in which, thanks to the South American government’s experience in cryptocurrencies, many of them will be able to solve their problems effectively. 

Controversy, however, was not long in coming. Some investors and many citizens of the small South American country are pointing out that El Salvador is navigating in the mire and sees no light at all at the end of the tunnel with debt still plaguing the country and inflation at record levels. 

 

Basically, the criticism made is that before helping others one should fix the accounts at home, also and not only for the sake of the cryptocurrency world that would benefit in terms of investor confidence and for the good of the country itself. 

George Michael Belardinelli

A former corporate manager at Carifac Spa and later at Veneto Banca Scpa, blogger and Rhumière, over the years he has become passionate about philosophy and the opportunities that innovation and the media make available to us, in particular the metaverse and augmented reality

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