8 months ago
El Salvador has reaffirmed its committedness to embracing bitcoin contempt the International Monetary Fund’s repeated calls for the state to driblet the cryptocurrency arsenic ineligible tender. The Salvadoran vice president emphasized that not lone volition El Salvador’s bitcoin instrumentality beryllium maintained but astatine this infinitesimal the cryptocurrency besides “enjoys the top credibility successful the full world.”
El Salvador Stands Firm connected Bitcoin
El Salvador Vice President Félix Ulloa said successful an interrogation with Reuters connected Wednesday that bitcoin volition stay ineligible tender successful El Salvador during the 2nd word of President Nayib Bukele adjacent aft the International Monetary Fund (IMF) again urged the state to driblet the cryptocurrency arsenic ineligible tender during negotiations for a billion-dollar loan. General elections volition beryllium held successful El Salvador connected Feb. 4 to elite the president, vice president, and each 60 deputies of the Legislative Assembly.
Ulloa affirmed that the Salvadoran authorities has nary volition of reversing its determination that made BTC ineligible tender. He noted that the caller support of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) lone strengthened its resolve. In September 2021, El Salvador became the archetypal state successful the satellite to found bitcoin arsenic ineligible tender alongside the U.S. dollar. Ulloa said:
Not lone volition it (the law) beryllium maintained … At this moment, it enjoys the top credibility successful the full world.
He explained that if President Bukele and his New Ideas enactment unafraid a landslide triumph successful Sunday’s election, the Salvadoran authorities volition proceed with its plans to motorboat bitcoin-backed bonds successful the archetypal 4th of 2024. Moreover, Ulloa confirmed that the operation of Bitcoin City, President Bukele’s projected tax-free crypto haven successful eastbound El Salvador, would proceed, on with the issuance of passports to investors contributing $1 cardinal successful cryptocurrency.
IMF Again Asks El Salvador to Reconsider Bitcoin arsenic Legal Tender
Following the decision of the IMF Executive Board’s Article IV consultation with El Salvador, the Fund published a study connected Jan. 24 stating that IMF directors “agreed connected the value of boosting fiscal inclusion and noted that integer means of payment—such arsenic the Chivo e-wallet—could play this role.”
However, the IMF stressed that the directors “emphasized the request for strict regularisation and oversight of the caller ecosystem of Chivo and bitcoin.” The study adds that they besides “stressed that determination are ample risks associated with the usage of bitcoin connected fiscal stability, fiscal integrity, and user protection, arsenic good arsenic the associated fiscal contingent liabilities,” noting:
They urged the authorities to constrictive the scope of the Bitcoin instrumentality by removing Bitcoin’s ineligible tender status.
The study further noted that immoderate directors “expressed interest implicit the risks associated with issuing bitcoin-backed bonds.”
The IMF has repeatedly urged El Salvador to reconsider bitcoin arsenic ineligible tender, starting with warnings successful November 2021 and January 2022 astir its risks and costs, followed by a elaborate study successful February 2023. Despite these warnings, El Salvador has remained steadfast successful its committedness to bitcoin.
This was not the archetypal clip the IMF urged El Salvador to reconsider bitcoin arsenic ineligible tender. Since November 2021, the Fund has repeatedly raised concerns astir El Salvador’s usage of bitcoin arsenic ineligible tender, issuing warnings successful November 2021 astir its risks, successful January 2022 astir its costs, and culminating successful a elaborate report outlining circumstantial issues successful February 2023. Despite these warnings, El Salvador remains committed to bitcoin.
What bash you deliberation astir El Salvador reaffirming its committedness to bitcoin contempt the IMF’s repeated calls for the state to driblet the crypto arsenic ineligible tender? Let america cognize successful the comments conception below.
English (US) 