{"id":1246705,"date":"2022-01-27T10:07:34","date_gmt":"2022-01-27T15:07:34","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1246705"},"modified":"2022-01-27T10:07:37","modified_gmt":"2022-01-27T15:07:37","slug":"imf-demands-el-salvador-give-up-on-bitcoin","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/imf-demands-el-salvador-give-up-on-bitcoin\/","title":{"rendered":"IMF Demands El Salvador Give Up on Bitcoin"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fimf-demands-el-salvador-give-up-on-bitcoin%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1246705&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div><img decoding=\"async\" src=\"https:\/\/media.breitbart.com\/media\/2018\/01\/wi\/afp\/22\/35b668_nordea-nordic-region-biggest-bank-it-bar-employees-trading-in-bitcoin-cryptocurrencies-e1516655966314.jpg\" class=\"ff-og-image-inserted\" alt=\"image\" \/><\/div>\n<p class=\"subheading\">The International Monetary Fund (IMF) on Tuesday \u201c<a href=\"https:\/\/www.imf.org\/en\/News\/Articles\/2022\/01\/25\/pr2213-el-salvador-imf-executive-board-concludes-2021-article-iv-consultation\">urged<\/a>\u201d El Salvador\u2019s government to rescind&nbsp;the legal tender status it bestowed to Bitcoin, a type of cryptocurrency, in September 2021, indicating that its failure to do so could hinder El Salvador\u2019s intention of securing a future loan from the financial institution.<\/p>\n<p>The IMF\u2019s executive board met with Salvadoran government officials on January 24 for an annual \u201cArticle IV consultation,\u201d which <a href=\"https:\/\/www.imf.org\/external\/about\/econsurv.htm\">serves<\/a> as a culmination of the IMF\u2019s regular surveillance of a member nation\u2019s economic policies. During the meeting, IMF directors \u201curged\u201d El Salvador\u2019s government authorities \u201cto narrow the scope of the Bitcoin law by removing Bitcoin\u2019s legal tender status,\u201d according to a press release issued by the organization on January 25.<\/p>\n<figure id=\"D-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"M-ROS-B1\" class=\"a8d\"><\/figure>\n<figure id=\"gmxrevmore\" class=\"H\"><\/figure>\n<p>El Salvador became the first country in the world to <a href=\"https:\/\/www.breitbart.com\/tech\/2021\/06\/09\/el-salvador-first-country-to-accept-bitcoin-at-legal-tender\/\">adopt<\/a> Bitcoin as a legal tender in September 2021. Financial analysts <a href=\"https:\/\/www.reuters.com\/world\/americas\/el-salvador-approves-first-law-bitcoin-legal-tender-2021-06-09\/\">predicted<\/a> the development could jeopardize El Salvador\u2019s plans at the time to ask the IMF for a loan of $1.3 billion, as the lender <a href=\"https:\/\/www.cnbc.com\/2021\/12\/24\/cryptocurrencies-why-the-imf-is-concerned.html\">views<\/a> the cryptocurrency world as demonstrating \u201cinadequate disclosure and oversight.\u201d The IMF formally addressed El Salvador\u2019s adoption of Bitcoin for the first time on January 25 during their consultation.<\/p>\n<p>\u201c[T]here are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities,\u201d the fund\u2019s board said.<\/p>\n<p>The IMF on Tuesday offered limited praise of El Salvador\u2019s \u201cChivo e-wallet,\u201d which it said could help facilitate a system of \u201cfinancial inclusion\u201d in the country in alignment with the international lender\u2019s objectives. El Salvador\u2019s government established the smartphone application-based \u201cChivo e-wallet\u201d in 2021 to directly <a href=\"https:\/\/www.breitbart.com\/economy\/2021\/10\/18\/el-salvador-opposition-protests-bitcoin-becoming-legal-tender\/\">support<\/a> its adoption of Bitcoin as a legal tender. The administration El Salvadoran President Nayib Bukele created the digital payment system to facilitate Salvadorans\u2019 acceptance and use of Bitcoin.<\/p>\n<figure id=\"M-ROS-B2\" class=\"a8d\"><\/figure>\n<p>\u201cPresident Nayib Bukele has said any Salvadoran can download the government digital wallet \u2018CHIVO\u2019 \u2014 a local word meaning \u2018good\u2019 \u2014 to accept payments in bitcoin or dollars,\u201d Reuters <a href=\"https:\/\/www.reuters.com\/world\/americas\/migrant-families-wary-el-salvador-becomes-first-adopt-bitcoin-2021-09-06\/\">reported<\/a> in September 2021.<\/p>\n<p>\u201cHaving installed the app on their phones, they will be able to withdraw dollars from government-backed cash machines,\u201d the news agency detailed.<\/p>\n<p>Bukele\u2019s administration said it primarily chose to adopt Bitcoin as a legal tender to help Salvadorans retain a collective $400 million lost each year through traditional remittance transaction fees. Remittances \u2014 or&nbsp;money sent home by citizens living abroad \u2014 account for roughly 23 percent of El Salvador\u2019s GDP.<\/p>\n<p>\u201cIn practice, El Salvador does not have its own currency,\u201d Reuters observed in June 2021.<\/p>\n<p>The Central American nation has continued to use the U.S. dollar as a legal tender (adopted in 2001) in addition to Bitcoin since September 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The International Monetary Fund (IMF) on Tuesday \u201curged\u201d El Salvador\u2019s government to rescind\u00a0the legal tender status it bestowed to Bitcoin, a type of cryptocurrency, in September 2021, indicating that its &#8230;<\/p>\n","protected":false},"author":1,"featured_media":1896155,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1246705","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1246705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1246705"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1246705\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1896155"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1246705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1246705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1246705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}