The International Monetary Fund has urged the country to end Bitcoin's status as legal tender.


Key Takeaways

The International Monetary Fund has urged El Salvador to discontinue Bitcoin's status as legal tender.

Directors at the IMF expressed concerns around financial stability, integrity, consumer protection, and other risks.

El Salvador first adopted Bitcoin in September 2021 and has lost approximately 30% on its initial investment.

Directors at the International Monetary Fund have recommended that El Salvador drop Bitcoin’s status as legal tender.

IMF Advises Against Bitcoin as Legal Tender

According to a press release published by the IMF today, the IMF’s directors “urged [El Salvador] to narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status.”

Those directors expressed concerns around financial stability, integrity, and consumer protection and suggested a need for regulation. More specifically, they noted that El Salvador’s Bitcoin-backed bonds, which were announced this winter, carry risks.

The IMF directors did, however, acknowledge that El Salvador’s Chivo e-wallet could help with financial inclusion by offering financial services to those that have little access to existing resources.

These statements were made as part of an Article IV consultation—a practice in which an economic team visits a country, a*sesses its economy, and reports back to IMF’s executive board.

El Salvador Has Faced Bitcoin Criticism Before

The IMF previously suggested that Bitcoin should not be used as legal tender in November 2021, shortly after the country adopted it.

The country also saw early controversy around the possibility that it would force certain businesses to accept Bitcoin, though it appears that the country did not force anyone do to so.

The country and its president, Nayib Bukele, have also been criticized for alleged surveillance tactics in recent weeks. Though these tactics were aimed at journalists rather than Bitcoin users, the allegations drew criticism from the crypto community.

El Salvador has purchased approximately 1,801 BTC to date, an amount currently valued at $65.3 million. That value represents losses of approximately 30% since purchase.

The country nevertheless continues to pursue new Bitcoin applications: it has opened volcano-powered Bitcoin mining facilities and is planning a Bitcoin City.

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EDIT: fu*k THE IMF

had to make an example out of them

aint saying they didnt make it easier themselves but...

BX Crypto
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Bullish

@ so what's the move?

So was the 30% drop tied to anything?

Nothing wrong with accepting it. Making it the standard this early is the mistake.

If using bitcoin is so bad and won't work....why not just let it fail ....makes me think

why don’t you crypto bros move to el salvador?

bitcoin in the future and guaranteed to propel El Salvador’s economy way past any country fueled by fiat - why not go there?

BlackSol said If using bitcoin is so bad and won't work....why not just let it fail ....makes me think

because you allow MS-13 to fully control all aspects of the country

fam said why don’t you crypto bros move to el salvador? bitcoin in the future and guaranteed to propel El Salvador’s economy way past any country fueled by fiat - why not go there?

Because everything I know is here

fam said why don’t you crypto bros move to el salvador? bitcoin in the future and guaranteed to propel El Salvador’s economy way past any country fueled by fiat - why not go there?

Have you been to El Salvador?

Ari Gold said Have you been to El Salvador?

fu*k around and catch a whole clip walking down the wrong street!

I only discovered a few days ago El Salvador’s official currency has been dollars since 2001

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PettyGotAFatty said fu*k around and catch a whole clip walking down the wrong street!

Did security with a dude from there that casually told me his brother got dismembered on top of a mountain.

Dude was like a Nam vet from just living there

Ari Gold said Have you been to El Salvador?

Have a friend that went out there for business. He was at a sneaker store and was about to buy some nike cortez kicks and the dude accompanying him yelled no stop. Told him the ms dudes will k*ll you for rocking them if ur not gang

Apparently they extort every single business too

El Salvador better do what the IMF "suggests".


Remember what happened to Mu'ammar Al-Qadhdhāfī when he tried to make gold the underlying strength of his dollar and not let outsiders have control of his banks.

Gold is what used to be what the U.S. Dollar was based off of too. With U.S. controlling its own wealth.... Before the Federal Reserve was created

You don’t LOSE unless you sell but this is NOT financial advice…

biscuit said El Salvador better do what the IMF "suggests". Remember what happened to Mu'ammar Al-Qadhdhāfī when he tried to make gold the underlying strength of his dollar and not let outsiders have control of his banks. Gold is what used to be what the U.S. Dollar was based off of too. With U.S. controlling its own wealth.... Before the Federal Reserve was created

Came in to remind people about this. Dude taking the country on to the gold standard is the real reason he got eliminated.

Buy bitcoin folk

….at the bottom? you want me to sell at the bottom? FOH

Tlatoani said So was the 30% drop tied to anything? Nothing wrong with accepting it. Making it the standard this early is the mistake.

I think BTC and other cryptos have a real future. With that said, I get why you wouldn't want it to be a countries legal tender. If your currency's value can half in a month for basically no reason what so ever, it shouldn't your countries currency. For the US, it should never adopt a currency they don't have control of.

IMF don't give a fukk about El Salvador financial stability

They just wanna keep giving El Salvador locked in those HIGH INTEREST LOANS basically to keep them in DEBT


if they don't give up that Bitcoin

Expect a military coup within the next year or that president to be a*sasinated

BlaqPanfa said I only discovered a few days ago El Salvador’s official currency has been dollars since 2001 view image

Yup the GLOBALISTS made them do it In 2001

"Monetary integration is our bullet-proofing mechanism for joining the globalised market," said Mr Rafael Barraza, director of El Salvador's central bank. ...

https://www.irishtimes.com › news
El Salvador adopts US dollar as its currency - The Irish Times