The El Salvador Bitcoin Fund Management Agency (AAB), the body responsible for managing, safeguarding and investing resources from public offerings of digital assets by the State, recorded revenues of around USD 212 million during the first half of 2024.
According to data published in the execution report According to the budgetary authority of the Ministry of Finance, the income obtained by the agency is derived from “exchange rate differentials.” A term that implies that the resources are the result of the increase or decrease of the conversion of a certain number of units of one currency to another. In this case, between dollars and some digital assetwhich can be bitcoin (BTC) or some other Cryptocurrency.
Hence, a series of speculations have arisen that relate the income of more than USD 200 million with BTC purchases What is the government of Nayib Bukele doing?.
“Are they, therefore, the sum of the margins between the price at which the State has acquired the bitcoins and the value that they had on the day the consultation for the report was made?” asks the economist Rafael Lemus, who has been studying bitcoins for some time comes questioning The government’s strategy with bitcoin.
This is a remote possibility, taking into account the 5,862 BTC that El Salvador has purchased since the end of 2021 to date. They posted a profit of USD 42.9 millionaccording to the tracker statistics nayibtracker.com.
Considering the above, economist Otto Rodríguez, former vice president of the Central Reserve Bank (BCR), assumes that these are funds that the State already owned.
The AAB was the entity that received the most income in the first half of 2024. Source: Ministry of Finance.
In this way, It is not entirely clear the origin of the resources, since they are not part of the budget assigned to the Administrator. CriptoNoticias requested comments from the AAB to try to clarify the doubts and is awaiting responses.
As reported by this media, the Bitcoin Fund Management Agency is an entity created by the government of Nayib Bukele in January 2023, within the framework of approval of the Digital Asset Issuance Act. It operates as a public law institution related to the Executive, through the Ministry of Economy, and is chaired by financial expert Astrid Giannina Bardi.
According to what establishes the lawthe AAB not only manages the resources from the public offerings of digital assets of the State, but also the profits that these offerings generate. Based on this, analyzes investment opportunities in cryptocurrencies for the government.
In fact, as the Ministry’s report points out, a significant portion of its current budget is allocated to investments in securities related to digital assets, specifically USD 10.1 million. The returns from these public offerings, until June 30, totaled 14.9 million dollars.
The amount initially approved as a budget for the Agency was USD 800,000. In September of last year the Legislative Assembly of El Salvador approved a reform to the nation’s 2023 budget in order to incorporate funds to the AAB, assigning it USD 1.8 millionBy October of that same year the budget rose to USD 13 million; reaching to almost USD 30 million by July of this year 2024.
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