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El Salvador’s President:FTX Is the Opposite of Bitcoin

Cointime Staff· 2 min read

Nayib Bukele, the president of El Salvador, believes the sudden collapse of Sam Bankman-Fried’s crypto empire FTX does not undermine the goodwill of Bitcoin, even though the leading cryptocurrency is down more than 70% of its all-time price.

Bukele shared his thoughts as critics continued to bash the entire crypto industry following the fall of FTX.

In a tweet, the president explained that Bitcoin was created to prevent Ponzi schemes and “Sam Bankman-Frieds” of the financial sector. He mentioned a host of other fallen entities in the global financial market, including Enron and WorldCom.

“FTX is the opposite of Bitcoin. Bitcoin protocol was created precisely to prevent Ponzi schemes, bank runs, Enron’s, WorldCom’s, Bernie Madoff’s, Sam Bankman-Fried’s, bailouts, and wealth reassignments,” he wrote.

Bukele argued that while some understand Bitcoin’s underlying infrastructure, others don’t because “we’re still early.”

Sam Bankman-Fried (SBF), the founder of FTX, resigned as the company’s CEO after filing for Chapter 11 bankruptcy on Friday. Since then, several crypto firms that have deep ties with FTX have been facing liquidity issues, with some halting users’ withdrawals.

Several non-crypto entities that partnered with FTX during its glory days have already severed ties with the exchange. Over the weekend, payment processing giant Visa ended its crypto debit card partnership with the exchange. The Miami-Dade County and Miami Heat have also terminated the $135 million naming rights deal they signed with FTX last year.

Bukele Still Bullish on Bitcoin

FTX’s collapse triggered a massive bloodbath in the crypto market, with Bitcoin crashing below $16,000 for the first time since late 2020. But despite this, Bukele is still optimistic about the crypto industry.

His latest comments mirror his year-long belief in the crypto industry. Recall that El Salvador was the first country to adopt BTC as a legal tender in 2021. Since then, the volcanic nation has been on a Bitcoin shopping spree.

El Salvador has acquired over 2,300 BTC and continues to HOLD amid the bear market. The country also plans to issue a Bitcoin bond and invest over $200 million in upgrading the infrastructure of its Bitcoin Beach in the coming months.

(By William A. Frederick)


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