{{ subpage.title }}

El Salvador's President Nayib Bukele present the plan of "Bitcoin City."

REUTERS/Jose Cabezas

What We’re Watching: Bukele’s crypto bomb, Somalia needs a president

Has El Salavdor’s crypto experiment bombed?

Mass protests erupted last fall after Nayib Bukele, El Salvador’s youthful, tech-savvy president with an authoritarian streak, announced that the country would begin accepting Bitcoin as legal tender. Many Salvadorans said Bukele’s embrace of the volatile currency would spur inflation and financial instability. Those warnings have proven prescient. In recent days, the crypto world has been caught in a tailspin, in part because global inflation has lowered investors’ tolerance for risk. Bitcoin and Etherium, the biggest cryptocurrencies, have both declined in value by 20-25% this week – and El Salvador is recording losses of about 37% based on what it forked out for crypto in a series of purchases. This has proven to be a disaster for Bukele: two major credit rating agencies predict El Salavdor will default on its loans. San Salvador has an IMF repayment due in January worth a whopping $800 million, and amid ongoing negotiations earlier this year the international lender warned that “Bitcoin should not be used as an official currency with legal tender status.” Still, the enigmatic Bukele continues to double down: this week, he released plans for the Bitcoin city he touted last fall – a smart city based on the use of the flailing currency.

Read Now Show less
Concern About Chinese Tennis Star Peng Shuai’s Safety Isn’t Going Away | World In :60 | GZERO Media

Peng Shuai, China's tennis star, appears safe but questions remain

Ian Bremmer shares his insights on global politics this week with a look at Peng Shuai's public appearance, El Salvador's "Bitcoin City," and Americans' Thanksgiving celebrations.

Why has China silenced its famous tennis player, Peng Shuai?

Well, they haven't completely silenced her in the sense that the head of the IOC, the International Olympic Committee with Beijing Olympics coming up, basically told the Chinese government, "hey, what is the absolute minimum that you can do so that we can get Beijing Olympics back on track?" And they did the absolute minimum, which was a half an hour phone call with her that felt like kind of a hostage phone call. But nonetheless, she says that she is fine and is private and doesn't want to talk about the fact that she had accused the former Vice Premier of sexually assaulting her. That is a fairly heady charge. It was clear, going to get a lot of headlines in the run-up to the Olympics. And she wasn't heard from after that. So big problem for the Chinese in the run-up to the Olympics.

Read Now Show less

Subscribe to GZERO Media's newsletter, Signal

Latest