International Monetary Fund urged El Salvador to abandon bitcoin
The agency has repeatedly offered to make such a decision, citing financial, economic, and legal problems
26.01.2022 - 12:05
226
1 min
0
What’s new? The Board of Directors of the International Monetary Fund (IMF) has called on El Salvador to abandon bitcoin as a legal tender within the state. The IMF officials believe that the state-run Chivo e-wallet can increase financial accessibility, but recommend that it be kept strictly regulated.
Information on the IMF website
How did events develop? In September, El Salvador became the first country to make bitcoin a legal tender, alongside the US dollar. The IMF has repeatedly called for the move to be reversed, citing financial, economic, and legal problems. Some board members have expressed concern about the risks associated with El Salvador’s expected issuance of bitcoin-linked bonds.
What is El Salvador’s plan for cryptocurrency development? The country is preparing to issue $1 billion in bonds, half of which will be used to buy bitcoin. The government is betting that the opportunity to profit from bitcoin will attract investors. They will be able to get a dollar yield of 6,5%, much lower than the current size of El Salvador’s similar government debt, which is approaching 17%.
Useful material?
Market
Tether Finance division will be responsible for the issuance and redemption of USDT stablecoins
Apr 18, 2024
Trends
The first project introduced on the platform will be BounceBit (BB)
Apr 18, 2024
Business
The rate exchange of the native ACH token reacted with a 10% increase
Apr 18, 2024
Market
Miners are hunting for the first block after halving as the value of the first satoshi could exceed $1 million
Apr 18, 2024
Market
The platform will be non-custodial and accessible to everyone
Apr 15, 2024
Market
China Asset Management, Harvest Global Investments, and Bosera Asset Management have received permits
Apr 15, 2024