Cryptocurrency

Development bank of El Salvador refuses to disclose country’s Bitcoin acquisition records

Zegex

The Development Bank of El Salvador, BANDESAL, has twice refused to disclose Bitcoin trading records to the government. according to In a tweet on Oct. 31 by the country’s Anti-Corruption Legal Advisory Center (ALAC).

With congressional approval, BANDESAL will raise $150 million in trust funds to facilitate the conversion of Bitcoin to US dollars before El Salvador adopts cryptocurrencies as legal tender in September 2021. Created FIDEBITCOIN —

ALAC will provide BANDESAL with information on a fiduciary basis, including dates and amounts related to Bitcoin purchases and sales, time of approval by the FIDEBITCOIN Board of Directors, current balance of FIDEBITCOIN accounts, cryptocurrency wallet addresses and account balances. requested to do so. used by the government.

The ALAC also reports on the government’s Bitcoin purchase process and the exchanges involved in that process, the value of public funds used by the government to purchase BTC and maintain Bitcoin-related projects, and the foreign governments hired to support them. I requested disclosure of information about the list of contractors. with the project.

In a statement of denial, BANDESAL declined the ALAC’s request on the grounds that personal information held by the state is confidential and public access is prohibited by constitutional and legal mandate.

bitcoin spending

El Salvador has bought 2,301 bitcoins for around $103.9 million since September 2021. The country’s Bitcoin Volcano Bond, which was intended to raise his $1 billion to build Bitcoin City, has been postponed amid growing skepticism about the project’s feasibility and Bitcoin adoption. .

To promote Bitcoin adoption, El Salvador also established a network of Bitcoin ATMs and launched a government e-wallet application, Chivo, which offers a $30 sign-up bonus in Bitcoin.

However, El Salvador’s Bitcoin network of 205 ATMs has recently dwindled compared to Spain’s 215 active ATMs. Chivo’s sign-up bonus also caused an uptick in his identity theft as the wallet experienced technical issues after its launch.

El Salvador’s President Nayib Bukele is a big Bitcoin investor, but neither he nor his government have publicly disclosed their investments.

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