Vice President of El Salvador: Will continue to maintain implementation of Bitcoin law

Author: Kevin Helms, Bitcoin.com; Compiled by: Deng Tong, Golden Finance

Despite repeated calls from the International Monetary Fund for the country to abandon cryptocurrencies as legal tender, El Salvador reiterated its acceptance of Bitcoin The promise of coins. The Vice President of El Salvador stressed that not only will El Salvador’s Bitcoin law be upheld, but that cryptocurrencies also “enjoy the greatest credibility in the world.”

El Salvador firmly supports Bitcoin

El Salvador Vice President Félix Ulloa said in an interview with Reuters on Wednesday that even if the International Monetary Fund (IMF) again urges the country to give up Cryptocurrency’s legal status, but Bitcoin will remain El Salvador’s legal tender during President Nayib Bukele’s second term and put up for bid during negotiations for a billion-dollar loan. El Salvador will hold general elections on February 4 to elect the president, vice president and all 60 representatives of the legislative assembly.

Ulloa confirmed that the El Salvadoran government has no intention of reversing BTC’s decision to become legal tender. He noted that the United States recently approved a spot Bitcoin exchange-traded fund (ETF). The U.S. Securities and Exchange Commission (SEC) simply strengthened its resolution. In September 2021, El Salvador became the first country in the world to establish Bitcoin as a legal tender alongside the US dollar. Ulloa  said:

It (the law) will not only be upheld... at this moment, it has the greatest credibility in the world.

He explained thatIf President Bukele and his “New Idea” party achieve a landslide victory in Sunday’s elections, the El Salvadoran government will be in power in the first quarter of 2024 Plans to issue Bitcoin-backed bonds continue. In addition, Ulloa confirmed that the Bitcoin City proposed by President Bukele in eastern El Salvador, a tax-free crypto port, will continue to be built, while investors will be issued passports with $1 million in cryptocurrencies.

The International Monetary Fund once again asks El Salvador to reconsider Bitcoin as legal tender

In Following the conclusion of the IMF Executive Board’s Article IV consultations with El Salvador, the IMF issued a report on January 24 stating that IMF directors “agreed on the importance of promoting financial inclusion, noting that Digital payment methods – such as Chivo e-wallets – can play this role.”

However, the IMF stressed that directors “stressedthe need for new ecosystems for Chivo and Bitcoin Strict supervision and supervision” The report adds that they also "stress that the use of Bitcoin presents significant risks to financial stability, financial integrity and consumer protection, as well as related fiscal contingent liabilities", noting:

They urged authorities to narrow the scope of Bitcoin laws by removing Bitcoin’s legal tender status.

The report further stated that some directors “expressed concerns about the risks associated with issuing Bitcoin-backed bonds.”

This is not the first time the IMF has urged El Salvador reconsiders Bitcoin as legal tender. Since November 2021, the Fund has repeatedly expressed concerns about El Salvador’s use of Bitcoin as legal tender, warning of its risks in November 2021, its costs in January 2022, and finally in 2023 A detailed report outlining specific issues was released in February. These warnings show that El Salvador remains committed to Bitcoin.