Bets Are On Over Bitcoin-Touting President’s Willingness to Pay

If there is one world leader hoping for a big Bitcoin rally it’s El Salvador’s President Nayib Bukele. The 1,801 coins he has purchased for state coffers since September are now worth $30 million less than what he paid for them. He also wants to sell $1 billion in Bitcoin-backed bonds, and before he has to pay back an actual USD bond due in eight months.

El Salvador’s bonds have returned -24.1% this year. The government has become increasingly reliant on short-term financing from the local market, but lately even those auctions have been undersubscribed. A planned $40 ...