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El Salvador’s Unwavering Commitment to Bitcoin Amid IMF Pressure

Upholding Bitcoin: El Salvador’s Defiance Against IMF’s Calls

El Salvador’s Stance on Bitcoin

Despite ongoing pressure from the International Monetary Fund (IMF) to abandon bitcoin as legal tender, El Salvador remains steadfast in its commitment to embrace the cryptocurrency. The Salvadoran government, led by President Nayib Bukele, reaffirms its dedication to bitcoin, asserting its resilience amidst international scrutiny.

Vice President’s Assurance: Bitcoin Retains Legal Tender Status

El Salvador’s Vice President, Félix Ulloa, emphasized in an interview with Reuters that bitcoin will retain its status as legal tender throughout President Bukele’s second term. Despite the IMF’s persistent calls for reconsideration during loan negotiations, Ulloa reiterated the government’s unwavering stance on the matter. He underscored that the recent approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. Securities and Exchange Commission (SEC) bolsters El Salvador’s confidence in bitcoin’s credibility.

Plans for Bitcoin Integration: Bitcoin-Backed Bonds and Bitcoin City

Ulloa outlined the government’s future plans for bitcoin integration, including the issuance of bitcoin-backed bonds in the first quarter of 2024. Additionally, President Bukele’s vision of establishing Bitcoin City, a tax-free crypto haven in eastern El Salvador, remains on course. Investors contributing $1 million in cryptocurrency will be eligible for passports, further illustrating the government’s proactive approach towards leveraging bitcoin for economic development.

IMF’s Concerns and El Salvador’s Response

Despite the IMF’s concerns regarding the risks associated with bitcoin’s legal tender status, El Salvador remains resolute. The IMF’s calls to narrow the scope of the Bitcoin law and reconsider the issuance of bitcoin-backed bonds have been met with defiance. The Fund’s repeated warnings since November 2021 have not swayed El Salvador’s determination to integrate bitcoin into its financial ecosystem.

Resilience in the Face of International Scrutiny

El Salvador’s defiance against IMF pressure reflects its determination to chart its own course in the realm of cryptocurrency adoption. As the nation prepares for upcoming elections, its unwavering commitment to bitcoin signals a bold stance on financial sovereignty and innovation. Despite external challenges, El Salvador remains resolute in its embrace of bitcoin as a transformative force in its economic landscape.

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