El Salvador Bitcoin agency reportedly made $235 this year, $7M off target

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—by Protos Staff

El Salvador’s Bitcoin Fund Management Agency (AAB) only made $235 between January and July this year despite plans to rake in almost $7.4 million.

As reported by La Prensa, the yearly budget for AAB was $13 million, with $1 million planned to come from El Salvador’s general fund and $12 million from the agency’s own income.

The government agency makes its money through the fees it collects by managing and investing in public offerings of digital assets. This agency is not El Salvador’s Bitcoin office. 

The budgeted plan said the AAB should have made almost $7.4 million from digital asset offerings and should have received over $700,000 from El Salvador’s general fund, all between January and July. 

However, by July the agency’s income was only $235. On top of this, over $11 million from the general fund was sent to the agency, an increase of 1,425% over what it was budgeted to receive.

Read more: Investors can get a refund on Bitfinex’s failed El Salvador hotel offering

According to the Associate Professor of Communications at Cal State Fullerton, Dr. Ricardo J. Valencia, this shows that there is “no interest in partnering with the Salv government in issuance bitcoin products.”

Another project in El Salvador that didn’t quite hit the mark was a Hampton Hotel that attempted to raise funds through a Bitfinex securities offering. It hoped to raise $6.25 million in 30 days but only managed $342,000.

Investors of this fundraiser were then entitled to a refund. The project reportedly stated it needed a minimum of $500,000 to carry out the build. However, the token’s issuer, Inversiones Laguardia, said the firm “already has commitments for the entire raise.”

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