Does IMF Hides a Secret Script for El Salvador Bitcoin Play? What’s Leading IMF to Fear?
Recently IMF addressed El Salvador to review its Bitcoin Law. The International Monetary Fund directs the country to tone their newly
introduced Bitcoin law. The step has been taken to adjust the countries financial integrity to suit regular financial standards.
According to IMF, the new law poses newer risks for this small country and its relatively small financial market. The international body demands El Salvador to strip away Bitcoin’s legal status from its system.
El Salvador’s Bitcoin Law Saga
El Salvador is a small country having almost 1/5th of its GDP coming from the U.S. It is safe to say that the country can surely utilize Bitcoin to improve its GDP. However, IMF has reservations due to the unpredictable nature of crypto. The International Monetary Fund demands the security of exchange stability.
Moreover, there is more to this story, perhaps IMF’s reservations have a hidden motive. The hidden motive can be to stop small countries like El Salvador to stop tilting towards crypto. As if such a small country starts relying on cryptocurrencies, this move will surely provoke other nations as well.
A Slow and Grave Danger?
Many countries including El Salvador rely one way or the other on the U.S dollar. This dollarization has provided long-standing stability to the dollar and the U.S economy. With countries gravitating towards cryptocurrencies, the IMF will have fewer clients and the self-serving motive of IMF will somewhat be disturbed.
The cryptocurrencies getting a legal tender and getting immunity from all such reservations will only drag IMF to have less influence. The current reservations of IMF to stop El Salvador from regulating Bitcoin are quite flawed.
The institution cannot resist the legal tender regulation just because of the high volatility of……..