El Salvador body to investigate complaints about government’s bitcoin purchases, ATM kiosks

A Cristosal official, who was not authorized to speak about the matter, confirmed that the complaint has been accepted.

El Salvador’s Court of Accounts, which oversees its public resources, will investigate a complaint about the government’s construction of kiosks for bitcoin purchases and cryptocurrency ATMs, according to a document seen by Reuters.

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El Salvador became the first country in the world this month Adoption of bitcoin as legal tender, a move supported by the country’s popular president Nayib Bukele.

The government has also launched a digital wallet, Chivo, which is linked to newly created Crypto Cash machines that allow users to withdraw physical money from their digital bitcoin holdings. Its roll out has been plagued with glitches.

The Court of Accounts, which can impose administrative and property sanctions against officials who could not resolve the deficiencies, said it received a complaint on September 10 from Cristosal, a regional human rights and transparency organization, about bitcoin implementation in El Salvador.

Christosal requested an audit of authorization procedures for the purchase of bitcoins and requested public resources to review the construction of booths used for ATMs linked to established company Chivo’s digital wallet.

Read also | El Salvador’s bitcoin adoption has “immediate implications” for ratings: S&P Global

Christosal’s complaint was against six members of the Bitcoin Trust’s board of directors, including members from the ministries of finance and economy, as well as the Commerce and Investment Secretariat.

“After the complaint is accepted, the legal analysis report will be forwarded and such report will be forwarded to the General Audit Coordination in a time-bound manner,” the Court of Accounts said in an official document reviewed by Reuters.

A Cristosal official, who was not authorized to speak about the matter, confirmed that the complaint has been accepted.

On top of approving authorities, the Court of Accounts is empowered to present notice to the Attorney General’s office to initiate criminal proceedings if it finds irregularities in its investigation.

President Bukele’s government did not immediately respond to a request for comment.

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