The International Monetary Fund has warned El Salvador to abandon Bitcoin as legal tender. Not just once or twice, but at least 4-5 times in the past. In fact, even the chief executives urged El Salvador to detach Bitcoin’s status as legal tender in the country. Moreover, in a recent Releasethe IMF insisted that El Salvador dissolve its trust fund of 150 million dollars set up at the time of its political decision.
agree to disagree
El Salvador’s Finance Minister Alejandro Zelaya responded to recent requests from the International Monetary Fund. And, as expected, he’s not being deterred by his “pro-BTC” stance.
According to Zelaya, the IMF’s demands are an “insult” to national sovereignty.
“El IMF recognizes advances of economic crecimiento, management of the pandemic and financial inclusion, pero también resalta los historical problems of the country. In 2 years, no podemos has gone to 40 years of bad manejo. Nunca habíamos crecido has a ritmo of 10.3%”, Ministro @AlejandroZelay9. pic.twitter.com/0Q3HGcMJil
— Diario La Huella (@LaHuellaSV) January 31, 2022
In an interview hosted by ‘Diario La Huella’, Zelaya opined,
“No international organization will force us to do anything, anything. Countries are sovereign nations and they make sovereign decisions on public policy.
Completely contrary toThe Article IV Assessmentpublished by the IMF.
The Minister went on to add,
“We have reached 4 million users. This has reduced transaction costs for Salvadorans abroad and within the country.
In addition to this, the Minister affirmed that El Salvador has complied with all rules relating to financial transactions and money laundering.
Backup
Salvadoran President Nayib Bukele has rejected the IMF recommendation on Bitcoin in the past. He remains bullish and positive about Bitcoin and its value as a digital asset. In fact, he expects a “gigantic price increase” in the future as wealthier individuals move in to acquire the flagship cryptocurrency.
In a Bukele tweet Noted that there are more than 50 million millionaires in the world, while the supply of BTC is limited to 21 million coins.
“If every millionaire in the world ever owned at least one coin, there wouldn’t even be enough for half of them, which meant a gigantic price increase is only a matter of time.
Needless to say, some have criticized the aforementioned narrative, however. For example, popular gold bug and crypto-skeptic Peter Schiff noted,
But why buy a whole #Bitcoins when a single Sat will do the job just as well (which is nothing.) A Bitcoin is just an arbitrary bundle of one hundred million Sat. Millionaires who already own Bitcoin are much more likely to sell! A gigantic price collapse is coming!
— Peter Schiff (@PeterSchiff) January 31, 2022
Bitcoin investment from El Salvador has been hit hard due to the latest stock market crash. In fact, this resulted in an unrealized loss of 31.8% for El Salvador after investing $88.4 million in the asset.
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