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El Salvador’s Bitcoin Fund Management Agency accrued only $235 in 2024, far below the $7.4 million target. Despite AAB’s revenue issues, El Salvador provided over $11 million in government funds, a 1425% increase over budget. In 2024, El Salvador’s Bitcoin Fund Management Agency (AAB) has fallen short of its financial targets. Despite plans to generate $7.4 million in revenue from January to July, the agency has only accrued $235. This outcome starkly contrasts with the ambitious annual budget of $13 million intended for the agency, reflecting a concerning financial performance. The AAB was projected to receive $1 million from El Salvador’s general fund and generate an additional $12 million from managing digital assets. However, the actual revenues are drastically lower than anticipated, highlighting a gap between projected and actual financial performance. This shortfall could pose serious implications for future crypto investments within the country. Source: @ricardovalp The situation has prompted public discourse about the effectiveness of the AAB. Ricardo Valencia, an analyst, expressed his views on X (formerly Twitter), describing the AAB as a “bureaucratic entity.” He highlighted that Congress had expected the AAB to collect $7.3 million by providing services to Bitcoin businesses interested in investing in El Salvador’s government. The actual collection of just $236 underscores a lack of interest in partnering with the government. Despite the AAB’s underperformance in generating its own income, it has received a substantial increase in government funding. The agency received over $11 million from the general fund, which is a 1,425% increase over the initially budgeted $700,000. This reliance on public funds to sustain the agency’s operations has sparked concerns about the sustainability of this funding model. Source: La Prensa Gráfica As we have already reported on the debt in El Salvador, the Salvadoran government continues its Dollar-Cost Averaging (DCA) strategy to…

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Filed under: News - @ September 20, 2024 1:23 am