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-60135552So, 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:
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.
The simple fact remains, that if El Salvador wants to borrow money from the IMF then they are within their rights to ask for concessions or terms which are acceptable to them. It seems now, with Bitcoin at all time highs, that El Salvador has probably made some money on their original start up investment into Bitcoin, but at the time this happened BTC was trending downwards and the superficial economists at the IMF decided that it was too risky. Ultimately, if a country is asking to be bailed out then perhaps the best course of action for them is to stick with traditional methods to right their economy - so they can give their people jobs, food and security, leaving the more adventurous investment ideas to countries that have the money to fund it themselves.