El Salvador Rejects IMF Call to Abandon Bitcoin as Legal Tender – Regulation Bitcoin News


El Salvador has rejected the International Monetary Fund’s (IMF) recommendation to drop bitcoin as a legal tender. The country’s finance minister reportedly “angrily” said, “No international organization will make us do anything, anything.”

El Salvador says No to IMF on Bitcoin

The government of El Salvador has rejected a recommendation from the International Monetary Fund (IMF) to drop bitcoin as a legal tender in the country.

The IMF urged El Salvador last week to abandon the use of bitcoin as a legal tender and dissolve Fidebitcoin, the $ 150 million trust fund created for the Bitcoin law.

El Salvador’s finance minister Alejandro Zelaya told a local television station that bitcoin was a matter of “sovereignty”. According to the media, he “angrily” said:

No international organization will make us do anything, anything.

“Countries are sovereign nations and they make sovereign decisions on public policy,” the finance minister added.

According to its analysis, “In the near future the real costs of implementing Chivo and operating the Bitcoin law outweigh potential benefits,” the IMF stated in its recent report on El Salvador.

The International Monetary Fund has also recommended that the government of El Salvador begin paying fees for the use of its digital wallet, Chivo. In addition, the IMF wants the Salvadoran government to stop giving away $ 30 in bitcoin to anyone who signs up to use the Chivo wallet.

According to the IMF’s recent report on El Salvador, the government saw no need to reduce the scope of its Bitcoin law but agreed that regulation could be strengthened.

El Salvador adopted bitcoin as its national currency with a legal tender along with the US dollar in September last year. Since then, the country has bought 1,801 BTC for its treasury.

In early January, El Salvador said 20 bills are being drafted for the legal structure of its bitcoin bonds, which President Nayib Bukele expects to be oversubscribed. He also expects two more countries to adopt BTC as a legal tender this year. In addition, he predicted a “giant price increase” for bitcoin.

What do you think of El Salvador rejecting the IMF’s recommendation to drop bitcoin as a legal tender? Let us know in the comments section below.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection between economics and cryptography.

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