The IMF calls on El Salvador to abolish Bitcoin as a legal means of payment

IMF asked El Salvador to abolish Bitcoin as a legal means of payment in the country, and expressed his concern about his plan to spend the bonds coupled to the cryptocurrency, since the prices for large digital coins experienced a difficult phase.

In September, El Salvador was given the first nation in the world to make Bitcoin legal means of payment in a plan, which was listed by Nayib Bukele, the 40-year-old president of the country and self-proclaimed "CEO". That meant that the digital asset could be used to buy goods, send transfers and even pay taxes in the country.

but executive directors of the IMF-of which El Salvador is aiming for financing of more than $ 1 billion-expressed concerns about this step in a statement on Tuesday.

"[The Directors] emphasized that the use of Bitcoin is associated with great risks for financial stability, financial integrity and consumer protection as well as the associated tax liabilities," the explanation says.

Bukele, a Bitcoin evangelist, has since spent tens of million public dollars for buying cryptocurrency-so far lost money. He doubled again last week when the prize overturned a six -month low in the past few weeks.

The conversations of the Central American nation with the IMF have hardly shown any progress, and concerns about the government's financing plan also contained the bonds of El Salvador, which were among the worst performers in the emerging countries last year.

Also the relationships El Salvador to the United States, the largest contribution payer of the IMF, have deteriorated under Bukele. Washington preliminary business leader left the country because she said that it "has no interest" by the Salvadorian government to improve relationships.

Despite the attention that the Bitcoin experiment of Bukele attracted, there is hardly any evidence of widespread use of cryptocurrency for everyday transactions in the country, and their implementation was one of the less popular steps of the extremely admired president.

bukele said that he is planning to build a volcanic, tax-favorable “Bitcoin city”, which is partly financed by the emission of government bonds worth $ 1 billion, which are supported by the cryptocurrency. Analysts follow the emission of the bonds expected in the coming weeks.

Siobhan Morden of Amherst Pierpoint Securities recently said in a message: "Although the 'First Mover' status in innovative financial products indicates an initial investor's question, it is not clear whether this structure would attract sufficient demand as a recurring source of liquidity."

Bukele, a productive social media user who often makes large government announcements on Twitter, changed its profile picture in itself on Monday with an McDonald’s hat and a shirt, a reference to the fast food chain, which has become popular under Meme-savvy cryptocurrency enthusiasts.

er Ratschlag, the price drop of Bitcoin, not to buy, Sell, and that McDonald’s workers should invest part of their salary checks in Bitcoin in order to then turn burgers again "du fauler fvçk!".