IMF urges El Salvador to take the decision back for Bitcoin adoption
The International Monetary Fund ordered lawmakers to remove Bitcoin from the country law as a legal Currency.
El Salvador is the first country in the world, which adopted Bitcoin as a legal currency. Many economic experts and global organizations criticized El Salvador president Nayib Bukele to adopt Bitcoin as a currency.
On 25 January, International Monetary Fund ( IMF) published its report on El Salvador and requested directly to remove Bitcoin from its laws as legal currency.
IMF noted that there are huge advantages to using Bitcoin in El Salvador and other countries as a financial inclusion but use as a currency may result into risky things like financial instability, financial integrity, and consumer protection.
The members of board of Executives stated that there is a very narrow scope with the use of Bitcoin as currency and also there are huge risks associated with the use of Bitcoin-backed bond idea in the country.
This is not the first time when IMF released its stance on Bitcoin adoption by El Salvador. Earlier this two to three times, IMF, directly and indirectly, criticized the decision of El Salvador to adopt Bitcoin as a legal tender. But this time, IMF directly stated to remove Bitcoin from the law of currency of El Salvador.
In this published report of IMF, Charles Hoskinson, founder of the Cardano project, reacted with a meme and said no.
At present, criticism against El Salvador is at its peak because the price of Bitcoin plunged more than the buy price of Bitcoin by El Salvador. The majority of the critics are taking the reference of the Bitcoin market crash and calling it the worst decision by Nayib Bukele to adopt Bitcoin as a currency.
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