Nouriel Roubini Says El Salvador’s President Should Be Impeached Over Bitcoin
Nobel laureate Nouriel Roubini calls Nayib Bukele ‘a criminal president’
Nobel laureate Nouriel Roubini has redoubled his criticism of El Salvador’s president Nayib Bukele, claiming the latter deserves to be impeached for having “banked” the country with his Bitcoin gamble.
Earlier this month, financial services firm Moody’s downgraded El Salvador’s sovereign credit rating over concerns that the country’s bold Bitcoin bet would prevent it from getting a much-needed $1.3 billion loan from the International Monetary Fund (IMF).
Moody’s analyst Jaime Reusche told Bloomberg that El Salvador’s fiscal profile would only get worse if the government increased its exposure to Bitcoin:
If it gets much higher, it means even greater risk to the issuer’s redemption capacity and tax profile.
El Salvador has $800 million in dollar-denominated bonds maturing in January 2023. Due to debt problems and uncertainties surrounding Bitcoin, yields on those bonds rose to 34% earlier this month. In 2021 they showed the worst performance in the whole world.
Plagued by the most ailing government debt around the world, El Salvador now plans to issue Bitcoin-denominated “volcano bonds” in partnership with blockchain developer Blockstream and iFinex, the parent company of Tether and Bitfinex. Some of the money raised will be used to build a libertarian mecca called “Bitcoin City”.
As reported by U.Today, Bukele faced backlash during a dramatic Bitcoin selloff that took place on Saturday. The “coolest dictator” is estimated to have lost more than $20 million buying Bitcoin with the country’s treasury funds.
The ‘CEO of El Salvador’, however, continued its Bitcoin purchase despite adversity.