El Salvador’s decision to make Bitcoin (BTC) legal tender continues to face criticism from the International Monetary Fund (IMF), which is asking the country to “limit public exposure” to the cryptocurrency.
El Salvador became the first country to make such a decision back in 2021. Since then, the IMF has been one of the loudest critics, warning of the financial and legal risks. During a press conference, IMF spokesperson Julie Kozack said the organization suggests the government reduce its use of Bitcoin and put stronger regulations in place.
In contrast, the IMF recently admitted that many of the risks it had predicted had not happened yet, but it still advises caution, Reuters reported on October 3.
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El Salvador’s President Nayib Bukele, who led the move to adopt Bitcoin, has mostly ignored these warnings and even joked about them on social media.
Under El Salvador’s Bitcoin law, businesses must accept the cryptocurrency if they have the technology to do so. The government has also spent a large amount of money buying Bitcoin.
However, in August, Bukele did acknowledge that the Bitcoin plan hadn’t gone as well as expected. Despite this, he remains committed to it.
Though the IMF continues to urge El Salvador to reconsider its approach, the country seems determined to keep moving forward with its Bitcoin experiment.
Gode is a Web3 Market Analyst who researches the most important industry events and interprets how they affect the wider Web3 space. Her formal education in media culture & digital rhetoric allows her to employ a methodical approach to evaluating critical Web3 news data, including large-scale events and the wider social sentiment within the ecosystem.Gode is a mutilingual professional, having studied in multiple universities all across Europe. This allows her to have a one-of-a-kind opportunity to analyze Web3 social sentiments spanning different cultures and languages and, in turn, develop a much deeper understanding of how the Web3 space is growing within different communities. With the rest of her team, Gode works to identify crucial crypto news patterns and provide unbiased and data-driven information.Gode’s passions include working and communicating with people, and when she’s not researching Web3 news, she spends her time traveling and watching true crime documentaries.
