RT.com
26 Jan 2022, 16:12 GMT+10
El Salvador became the first country in the world to adopt Bitcoin as legal tender in 2021
The International Monetary Fund (IMF) encouraged El Salvador to drop Bitcoin's status as an official currency on Tuesday, warning that the cryptocurrency could cause financial instability.
In a statement, the IMF claimed El Salvador's decision to adopt Bitcoin as legal tender last year "entails large risks for financial and market integrity, financial stability, and consumer protection."
The IMF called for "strict regulation and oversight" of Bitcoin in the country and urged the government to "narrow the scope of the Bitcoin law by removing Bitcoin's legal tender status."
"Some Directors also expressed concern over the risks associated with issuing Bitcoin-backed bonds," the IMF added.
El Salvador - the first country in the world to adopt Bitcoin as legal tender - plans to issue a 10-year, $1 billion Bitcoin bond this year.
President Nayib Bukele appeared to brush off the IMF warning in a Twitter post on Tuesday, which mockingly portrayed the organization as The Simpsons' iconic buffoon character Homer Simpson walking on his hands. "I see you, IMF. That's very nice," the post was captioned.
On Sunday, after Bitcoin traded at its lowest level since July, causing an estimated $20 million loss to El Salvador, President Bukele jokingly changed his Twitter profile picture to an edited image of himself wearing a McDonald's uniform.
Bukele - who refers to himself as the 'CEO of El Salvador' on social media - has been a vocal supporter of Bitcoin. In November, Bukele announced plans for a 'Bitcoin City' funded by cryptocurrency bonds, while in October, he revealed that the country had mined its first bitcoin using power from a volcano.
(RT.com)
Get a daily dose of Herald Globe news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Herald Globe.
More InformationFormer U.S. President George W. Bush has made an embarrassing mistake in criticizing Russian President Vladimir Putin over his decision ...
WASHINGTON D.C.: The U.S. State Department has announced the launch of a new program to capture and analyze evidence of ...
JAKARTA, Indonesia: A new poll released this week indicated that Indonesian President Joko Widodo's approval rating has hit a six-year ...
EAST JAVA, Indonesia: A tourist bus crashed into a billboard on a highway on Indonesia's main island of Java this ...
BELGRADE, Serbia: Belgrade was paralyzed this week by a series of bomb threats, including against schools, bridges, restaurants and a ...
WASHINGTON D.C.: In a tweet this week, Amazon founder Jeff Bezos criticized President Joe Biden for the second time in ...
Astros left-hander Framber Valdez entered Thursday trailing only Justin Verlander on the Houston staff in innings pitched, having worked at ...
After defeating the Seattle Mariners with a season-high 12-run, 16-hit performance on Thursday, the Boston Red Sox look to build ...
The Chicago Cubs followed a lengthy rough stretch by stringing together some needed victories. Now, the Arizona Diamondbacks are hoping ...
San Diego Padres manager Bob Melvin will rejoin the team and resume his duties on Friday, just nine days after ...
David Perron scored two goals, Jordan Kyrou and Brandon Saad also scored and the St. Louis Blues beat the Colorado ...
Trevor Story went 4-for-4 with three home runs, seven RBIs and five runs as the Boston Red Sox beat the ...