It has been over 2 months since El Salvador (ES) adopted Bitcoin (BTC) as a legal tender. In such a short amount of time, El Salvador has made an enormous amount of progress in terms of adopting Bitcoin. The country has been coming up with newer, effective, and efficient ways of adopting Bitcoin as a legal tender.
The country has been advancing more and more into the adoption of Bitcoin. Nayib Bukele, the president of El Salvador has proven to be at the forefront of the advancement and adoption of Bitcoin in the country.
While the country seems to be thriving over the adoption of Bitcoin as a legal tender, the international regulators do not seem to be liking the idea. Among several international regulators, it is the International Monetary Fund (IMF) that is totally against the idea of ES adopting Bitcoin as a legal tender.
According to the IMF, El Salvador must not adopt Bitcoin as a legal tender. The International Monetary Fund (IMF) has shared its concerns over the consumer and financial risks that Bitcoin poses as a legal tender.
This statement was made by the higher-ups of the International Monetary Fund in a conclusive statement. As of now, El Salvador is the first-ever and only country in the entire world that has accepted Bitcoin as a legal tender.
In a statement released by the International Monetary Fund, it has shared its concerns over the risks that the adoption of Bitcoin entails. Bitcoin, including the entire cryptocurrency sector, is highly volatile. Due to being highly volatile, it is of really high risk to the financial stability, financial integrity, and asset protection of the consumers.
This statement was released by the International Monetary Fund on November 22, 2021. The adoption of Bitcoin on a government scale is very risky for the entire country and it has the ability to invoke contingent liabilities. As a result of adopting cryptocurrencies, the country is putting itself at a major financial risk.
According to the International Monetary Fund, these are the major reasons why Bitcoin and other cryptocurrencies must not be adopted as legal tender.
Despite the pressure from international regulators and even the IMF, El Salvador is spearheading its adoption of Bitcoin. It was on September 7, 2021, when the country adopted Bitcoin as a legal tender. Since the adoption, several use cases for Bitcoin have been introduced in the country.
The government is also introducing several benefits for the locals from the usage of Bitcoin, in order to bring in more adoption for the sector. As of now, Bitcoin has been adopted in El Salvador by restaurants as a mode of payment. Several hundred ATMs for Bitcoin have been installed and many more developments have been made in the country involving Bitcoin.