Last Monday, the IMF recommended El Salvador stop using bitcoin as legal tender and dissolve Fidebitcoin, a $150 million trust fund set up to implement the Bitcoin law. But El Salvador’s government rejected the International Monetary Fund’s (IMF) proposal. Alejandro Zelaya, El Salvador’s Finance Minister, told the local television station that bitcoin is a “sovereignty” problem.
In a recent report on El Salvador, the IMF stated, “In the near term, the real costs of adopting Chivo and operationalizing the Bitcoin legislation exceed the prospective advantages.”
According to the International Monetary Fund, El Salvador’s government should start collecting fees for using its digital wallet, Chivo. The IMF also wants the Salvadoran government to stop giving out $30 in bitcoin to everybody who signs up for the Chivo wallet.
According to a recent IMF report, El Salvador’s government does not see the need to narrow the scope of its Bitcoin law, but acknowledges that regulation might be improved.
In September of last year, El Salvador approved bitcoin as a national currency with legal tender status alongside the US dollar. Since then, the country’s treasury has acquired 1,801 BTC.
El Salvador said in early January that 20 laws for the legal framework of its bitcoin bonds are being developed, with President Nayib Bukele expecting them to be oversubscribed. He also expects BTC to become legal tender in two more nations this year. He also projected a “gigantic price surge” for bitcoin.
