El Salvador has rejected the International Monetary Fund’s (IMF) advice to abandon bitcoin as a form of payment. “No foreign organization would force us to do anything,” the country’s finance minister “angrily” claimed.
El Salvador’s government has rejected an IMF suggestion to disband bitcoin as legal tender.
The IMF had previously urged El Salvador to stop utilizing bitcoin as legal tender and dissolve the $150 million trust fund established under the Bitcoin Act.
El Salvador’s finance minister recently informed a local television station that bitcoin is now a subject of “sovereignty” for his country. According to the media, he stated:
No foreign organization can compel us to act in any way.
“Countries are sovereign and make their own public policy decisions,” the finance minister added.
According to the IMF, “in the near term, the actual costs of implementing Chivo and enacting a bitcoin law outweigh the potential benefits.”
Additionally, the International Monetary Fund advised that the Salvadoran government begin charging its Chivo digital wallet users. Furthermore, the IMF requests that the country’s authorities discontinue giving away $30 in bitcoin to everybody who signs up for the Chivo mobile app.
Despite this, El Salvador’s government sees no need to limit the reach of its bitcoin law, and he only agreed on the need to strengthen cryptocurrency regulations.
Recall that El Salvador legalized bitcoin in September alongside the US dollar as a national currency with legal tender status. Additionally, the country has added up to 1,801 BTC to its state treasury since then. During the latest price drop, the government even acquired bitcoins.
El Salvador said in early January that it was drafting 20 bills to establish a legal framework for its bitcoin bonds. President Nayib Bukele is confident that these activities will be a huge success. Additionally, it anticipates two other countries adopting BTC as legal tender this year.