"Bitcoin has not defaulted the country" - Salvadoran President pays off $800 million national debt, questions why media isn't reporting

El Salvador, which considers Bitcoin as legal tender and has been heavily buying the cryptocurrency, repaid an $800 million bond on January 24, 2023. President Nayib Bukele of El Salvador expressed frustration on social media, stating that mainstream media had been critical in the past but remained silent at this time.

International Distrust

In 2022, the International Monetary Fund (IMF) publicly opposed El Salvador's Bitcoin policy due to financial risk factors; the three major U.S. credit rating agencies, Moody's and Fitch, both downgraded El Salvador's bond ratings to "CCC" as they believe that El Salvador President Nayib Bukele's concentration of power and Bitcoin policy pose default risks for the country's bonds due in 2023.

El Salvador's Successful Debt Repayment

El Salvador President Nayib Bukele tweeted stating that mainstream media's skepticism about El Salvador's bet on Bitcoin and questioning the country's debt repayment ability. However, this year El Salvador fully repaid $800 million in national debt, with an actual remaining balance of just over $600 million. Only one Colombian report mentioned this, while the skeptical media remained silent.

Bukele complained that in the past, they always said that if we didn't meet the IMF's expectations and receive aid, we would incur losses due to Bitcoin investments and be unable to repay the 2023 national debt.

Sources indicated that El Salvador will continue to repay as scheduled, proving its repayment ability to credit rating agencies and the capital market.

Colombian media also affirmed Nayib Bukele's 92% approval rating, acknowledging his efforts in actively combating crime.

In addition to national debt, El Salvador's National Bitcoin Office (ONBTC) also announced that after the new law is passed, the long-delayed Bitcoin bonds are expected to be issued.

More Than One Bond Due

However, El Salvador has more bonds maturing in the future, and the success of its long-term Bitcoin strategy will be repeatedly tested: