Morgan Stanley Urges Investors to Buy El Salvador Bonds
- El Salvador is the first country to make Bitcoin legal tender.
- The move inspired the Central African Republic to launch its own Sango coins.
El Salvador has maintained a bullish stance on cryptocurrencies, but, sadly, the market’s decline has heavily affected its investment. However, the Latin American country has remained confident in BTC’s performance and has continued to purchase the digital asset.
Amid the poor market, financial service provider, Morgan Stanley is advising investors to purchase bonds from El Salvador, which has suffered since the collapse of the cryptocurrency market. The nation’s bond performance has been particularly weak as a result of the recent market crisis.
Morgan Stanley’s global head of emerging-market sovereign credit strategy, Simon Waever, reportedly said that El Salvador’s bonds are suffering greatly in the market despite the country’s greater financial metric than its counterpart. Waever’s address to investors read,
Markets are clearly pricing in a high probability of the autarky scenario in which El Salvador defaults, but there is no restructuring.
El Salvador’s romance with bitcoin is public knowledge in the financial community, and some see it as a test. Despite the popularity of the digital asset, many nations oppose making it legal tender. However, several countries have finally warmed up to it as an asset class.
Multiple global institutions questioned El Salvador’s decision to fully embrace bitcoin as legal tender, stating that it carries possible risks. Both the International Monetary Fund (IMF) and the World Trade Organization (WTO) voiced their concern about the news.
Despite the initial sticks it received for going the distance with bitcoin, El Salvador has leveraged the bear market by using it to purchase an additional 80 bitcoins. Investors, who have grown worried since the most recent market meltdown, have been advised to exercise patience by President Nayib Bukkele whose faith in bitcoin is undoubtedly impressive. El Salvador also believes its bet on bitcoin does not pose any significant risk to its economy as it only made a minimal investment in the cryptocurrency.
El Salvador Sparks a Bitcoin Wave
El Salvador’s approach to bitcoin has also inspired other nations to follow suit. The Central African Republic has also legalized bitcoin, which drew criticism from international authorities. The African country recently revealed that the sale of the Central African Republic (CAR)’s 210,000,000 Sango coins will commence on July 25 and investors must purchase tokens worth at least $500 to be eligible to participate.
Furthermore, investors will receive citizenship, a piece of real estate, and a spot in the metaverse in exchange for purchasing and locking in the Sango currencies. The Sango coin will reportedly be sold for an equivalent of $0.10.
The Central African Republic has grown increasingly ambitious about the crypto space. The country said it intends to increase internet accessibility and availability by increasing investment in telecommunications infrastructure. Investing in the internet and making it accessible will enable citizens to fully participate in the intended digital revolution the CAR’s government hopes bitcoin will bring to its shores.
The Central Africa Republic is far from backing down from its hold on bitcoin despite the criticism it received from members of the bitcoin community. The nation is strongly looking at adding Sango coins as a form of payment.
This move is one of a kind in the African continent where most nations are yet to warm up to the crypto industry. Countries such as Nigeria have adopted a strong policy against cryptocurrencies but instead chose to launch their own digital currency. It remains to be seen if the Sango coin will inspire other nations to open up to greater use of digital currencies.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
