• Send Us A Tip
  • Calling all Tech Writers
  • Advertise
Tuesday, June 17, 2025
  • Login
  • Register
TechStory
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to
No Result
View All Result
TechStory
No Result
View All Result
Home Crypto Bitcoin

The IMF warns El Salvador not to use Bitcoin as legal tender

by Baisakhi Mishra
November 24, 2021
in Bitcoin, Crypto, News
Reading Time: 2 mins read
0
The IMF warns El Salvador not to use Bitcoin as legal tender

Image Source: Wealth Insider

TwitterWhatsappLinkedin

El Salvador has been warned by the International Monetary Fund (IMF) against utilizing Bitcoin as legal cash due to the numerous hazards involved with cryptocurrencies.

You might also like

Strategy’s Bold Bitcoin Play: Acquires 10,100 BTC, Cementing Leadership with 592,100 Coins

Crypto’s Counterculture Clash: Coinbase Sponsorship of Trump’s Parade

Crypto Crown: How Digital Assets Overtook Real Estate in Fortune of Trump

The warning came just one day after Salvadoran President Nayib Bukele declared his intention to establish a “Bitcoin metropolis” powered by a volcano and financed with Bitcoin bonds.

The IMF says El Salvador shouldn’t use Bitcoin as Legal Tender

The IMF warns El Salvador not to use Bitcoin as legal tender
Image Source: NDTV Gadgets 360

During a promotional Bitcoin event late Saturday in the coastal village of Mizata, Mr. Bukele told a rowdy crowd that the planned new metropolis will “have everything.” The 40-year-old remarked, “Everything is committed to Bitcoin. Residential areas, business areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything is committed to Bitcoin.”

On stage, the president, who was wearing a baseball cap backward, announced that the city will have no income taxes and only a value-added tax (VAT). El Salvador was urged by the International Monetary Fund (IMF) on Monday not to utilize Bitcoin as legal cash, citing multiple hazards linked with the cryptocurrency.

El Salvador is the world’s first country to accept Bitcoin as legal cash in addition to the US dollar, which it has used for two decades. In September, the country’s Bitcoin law went into effect. El Salvador has also purchased 1,120 bitcoins, according to President Nayib Bukele of El Salvador.

Before requesting to use the IMF’s resources, the IMF sends Article IV missions to member countries to consult with government authorities. “The acceptance of Bitcoin as legal tender, the regulation and supervision of Bitcoin service providers, and the e-wallet Chivo were also considered,” according to the IMF.

The IMF addressed the following in its “Staff Concluding Statement of the 2021 Article IV Mission” for El Salvador: ”Given Bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender.”

The IMF then advised El Salvador to “limit the scope of the Bitcoin law” and to improve “the regulation and supervision of the new payment ecosystem.” The IMF’s announcement came just one day after President Bukele revealed plans to develop the world’s first Bitcoin metropolis, powered by a volcano and financed with Bitcoin bonds. Except for the value-added tax, there will be no taxes in Bitcoin city, he said (VAT).

“The intentions to issue sovereign bonds and use the profits to buy bitcoin and fund infrastructure plans revealed on November 20 took place after the mission’s technical work was completed and were not discussed with the authorities,” the IMF confirmed.

“Although we certainly do not agree on some aspects, such as the adoption of Bitcoin, the analysis it makes of our country is interesting,” Bukele said of the IMF’s comments.

What are your thoughts on the IMF’s advice to El Salvador not to use Bitcoin as legal tender? Please share your thoughts in the comments box below.

If you find this article informative then do share it with your friends and family!

Also read: Japanese firms set to test digital currency, launch in FY2022

Tags: bitcoinCryptocurrenciesEl SalvadorNayib Bukele
Tweet54SendShare15
Previous Post

Apple told the Securities and Exchange Commission that it does not suppress employees who report workplace harassment or discrimination. 

Next Post

Black Friday 2021 deals for Apple MacBook Pro 

Baisakhi Mishra

Recommended For You

Strategy’s Bold Bitcoin Play: Acquires 10,100 BTC, Cementing Leadership with 592,100 Coins

by Anindya Paul
June 16, 2025
0
Strategy

In a striking reaffirmation of its deep-seated bitcoin strategy, software intelligence firm MicroStrategy—now branded simply as Strategy—announced on June 16 that it had purchased an additional 10,100 BTC, bringing...

Read more

Crypto’s Counterculture Clash: Coinbase Sponsorship of Trump’s Parade

by Anindya Paul
June 16, 2025
0
Coinbase

In a move that has stirred controversy within the crypto community, Coinbase—the largest U.S.-based crypto exchange—joined prominent tech firms like Amazon, Palantir, and Lockheed Martin as a sponsor...

Read more

Crypto Crown: How Digital Assets Overtook Real Estate in Fortune of Trump

by Anindya Paul
June 16, 2025
0
Trump

For decades Donald Trump has accrued his wealth through real estate. In just a few years he has become a crypto billionaire. A recent financial review indicated that...

Read more
Next Post
Black Friday 2021 deals for Apple MacBook Pro 

Black Friday 2021 deals for Apple MacBook Pro 

Please login to join discussion

Techstory

Tech and Business News from around the world. Follow along for latest in the world of Tech, AI, Crypto, EVs, Business Personalities and more.
reach us at [email protected]

Advertise With Us

Reach out at - [email protected]

BROWSE BY TAG

#Crypto #howto 2024 acquisition AI amazon Apple bitcoin Business China cryptocurrency e-commerce electric vehicles Elon Musk Ethereum facebook flipkart funding Gaming Google India Instagram Investment ios iPhone IPO Market Markets Meta Microsoft News NFT samsung Social Media SpaceX startup startups tech technology Tesla TikTok trend trending twitter US

© 2024 Techstory.in

No Result
View All Result
  • News
  • Crypto
  • Gadgets
  • Memes
  • Gaming
  • Cars
  • AI
  • Startups
  • Markets
  • How to

© 2024 Techstory.in

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?