El Salvador\u2019s president Nayib Bukele has been criticised for investing hundreds of millions of public money on bitcoin. <\/p>\n<\/div>\n
Last year, the world leader made the decision to make the cryptocurrency legal tender. He purchased nearly $US100 million ($145 million) in the digital currency and announced plans to build a bitcoin city<\/a>. <\/p>\n The head of state hoped to raise the funds for the new city by selling $US1 billion ($1.4 billion) of bitcoin-backed bonds. The community would be built at the base of a volcano that would provide geothermal energy and power a bitcoin mining industry.<\/p>\n However, the country\u2019s 2300 bitcoins have not risen in value since it was bought and none have been sold anywhere making profit.<\/p>\n President Bukele poured an additional $US200 million ($290 million) into a subsidised bitcoin wallet app, called Chivo. The app has been expensive to roll out and run. <\/p>\n Stay up to date with the latest in crypto currency on Flash. 25+ news channels in 1 place. New to Flash? Try 1 month free. Offer ends 31 October, 2022 ><\/a><\/b><\/i><\/p>\n Local economist Tatiana Marroqui is concerned about the money being spent and said the project is risky. <\/p>\n \u201cWe don\u2019t know exactly when or with what money they\u2019ve bought bitcoins,\u201d Ms Marroqui said in the documentary El Salvador\u2019s Big Bitcoin Gamble<\/i>, available to stream on Flash<\/a>.<\/p>\n \u201cThere are lots of questions about how that money is being spent.<\/p>\n \u201cI know the country\u2019s finances pretty well, and there is not even the smallest margin for publicly funded projects which are risky. The needs of the population are huge.<\/p>\n \u201cBuilding a Bitcoin City is one of the most under-developed areas in the country would be like creating a billionaire\u2019s oasis in the middle of a desert of poverty. <\/p>\n \u201cIf he builds it, it\u2019s going to be at the expense of huge sacrifices from the Salvadoran people.\u201d<\/p>\n In January, the International Monetary Fund (IMF) urged El Salvador to remove bitcoin as legal tender, highlighting the \u201clarge risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection,\u201d according to the BBC<\/a>. <\/p>\n Despite criticisms and bitcoin\u2019s falling value, the government\u2019s Tourism Minister Morena Valdez said citizens trust President Bukele\u2019s decisions. <\/p>\n \u201cWe know that each of the president\u2019s decisions are made in the right moment,\u201d Ms Valdez said. <\/p>\n \u201cPeople have a lot of trust in his decisions and in how the country\u2019s economy is going.\u201d <\/p>\n Other countries are reportedly considering El Salvador\u2019s move. <\/p>\n The Central African Republic made Bitcoin its legal tender earlier this year. <\/p>\n The country\u2019s president, Faustin-Archange Touad\u00e9ra, announced the news on Twitter<\/a>, describing the digital currency as \u201cuniversal money\u201d.<\/p>\n Bitcoin and other digital tokens have suffered an eye-watering crash this year that has wiped trillions of dollars off the value of the cryptocurrency market.<\/p>\n