In a recent post I wrote, I spoke about El Salvador's use of Bitcoin as legal tender. Many people speculated that this could be a good move for El Salvador and for crypto to be more widely accepted overall. Sadly, it seems like this move may have been the wrong one, or at least ahead of its time.
The IMF (International Monetary Fund) recently stated a recommendation that El Salvador discontinue the use of Bitcoin as legal tender due to financial instability and liability risks that it has created. This recommendation comes during El Salvador's negotiations for a loan amount that figures in the billions. The IMF pushed El Salvador towards more regulation, and for authorities to strip Bitcoin of its legal tender status. Reasons cited included consumer protection, financial instability, and financial integrity.
El Salvador's President has been a vocal proponent of cryptocurrency. El Salvador currently holds 1500 Bitcoins, which today would value at 57300000. El Salvador's radical move could spell financial ruin, or be a big win for early adopters everywhere.
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