Post
Topic
Board Economics
Topic OP
IMF urges El Salvador to remove Bitcoin as legal tender
by
bitmover
on 26/01/2022, 12:38:55 UTC
Quote
IMF urges El Salvador to remove Bitcoin as legal tender

The International Monetary Fund (IMF) has urged El Salvador to reverse its decision to make Bitcoin legal tender.

In September, El Salvador became the first country to allow consumers to use the cryptocurrency in all transactions, alongside the US dollar.

The decision led to large-scale protests over fears it would bring instability and inflation to the impoverished Latin American country.

Bitcoin has lost about half its value since November.

The IMF has warned President Nayib Bukele of the risks the cryptocurrency poses to the country, stressing that it would be difficult to get a loan from the institution.
https://www.bbc.com/news/world-latin-america-60135552


So, International Monetary fund demands that El Salvador remove bitcoin as legal tender, otherwise it refuses to give loans to the country.

They are doing so to protect the people, as bitcoin will "bring instability and inflation"

How come a deflationary currency will increase the inflation ? WTF!

they continue, saying that IMF wants to protect the consumers:
Quote
They highlighted the "large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection" and with issuing Bitcoin-backed bonds.

We don't know what is good for us, but they know it.