Market

The IMF asks El Salvador not to recognize the digital currency Bitcoin

The IMF asks El Salvador not to recognize the digital currency Bitcoin

The IMF emphasized that using Bitcoin and issuing bonds of this digital currency pose major risks to financial integrity and stability, as well as customer protection.


Bitcoin digital currency. (Photo: AFP/VNA)

On Jan. 25, the International Monetary Fund (IMF) asked El Salvador to change its policy and stop using Bitcoin as a legal currency due to potential risks.

In September 2021, El Salvador became the first country in the world to officially recognize the digital currency by allowing people to use bitcoin in all transactions along with bitcoin. U.S. dollar.

Two months later, the government of that country further announced a plan to build the world’s first “bitcoin city” with investment capital raised by issuing 1 bitcoin. billion dollars Bitcoin Bonds.

Recently, El Salvador has also continuously used Bitcoin’s price drop to increase investments in this cryptocurrency.

Immediately after El Salvador made the decision, the IMF urged President Nayib Bukele’s government to reconsider. The IMF’s latest statement is said to be stronger and to have been made by the IMF’s Executive Board, including representatives of member governments, including the US.

The statement recommends that El Salvador remove the requirement to recognize bitcoin as a legal currency in transactions. The IMF emphasized that using Bitcoin and issuing bonds of this digital currency pose major risks to financial integrity and stability, as well as customer protection.

In the past few days, the value of Bitcoin has plummeted due to the high volatility in Wall Street financial markets. Bitcoin was trading around $37,000/bitcoin on Jan. 25, down almost 50% from the record price of $67,734 in November 2021.

Analysts predict that Bitcoin will face significant competition from other digital currencies, including Ethereum, in 2022.

Join CoinCu Telegram to keep track of news: https://t.me/coincunews

Follow CoinCu Youtube Channel | Follow CoinCu Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

BlockDAG Surges Past $170M as BDAG250 Bonus End Countdown Begins – Aave Targets $400 & Solana Shines with Scalability

BlockDAG crosses $170.5M in presale success with BDAG250 bonus and Whitepaper V3 launch! Solana grows…

49 minutes ago

Qubetics Presale Price Surge Approaches: The Best Coins to Invest in Right Now While Toncoin, and XRP Gain Traction

Discover why Qubetics, Toncoin, and XRP are the best coins to invest in right now.…

1 hour ago

Book of Meme Old News? This Best Meme Coin to Invest in 2024 Is Multiplying Gains Like a Champ

Over the years, meme coins have evolved from inside jokes into serious investment opportunities.

2 hours ago

Time’s Ticking on BlockDAG’s 5-Tier Bonus- Few Days Left to Grab It While Cardano Whales Take Action, Aave Rallies Strong

Discover BlockDAG's five-tier bonus program's closing phases that enhance buyer holdings. Gain insights on the…

3 hours ago

Best Altcoins to Buy for 2025: Qubetics Presale Surge, Solana’s Lightning Speed, and Cardano’s Blockchain Revolution

Discover why Qubetics, Solana, and Cardano are redefining the crypto landscape. Learn about milestones, price…

4 hours ago

Why Qubetics, NEAR Protocol, and IMX Are Dominating Crypto: The Best Altcoins to Join Today for Game-Changing Returns 

Discover why Qubetics, NEAR Protocol, and Immutable X are the best altcoins to join today,…

6 hours ago

This website uses cookies.