The board of the International Monetary Fund (IMF) has called on El Salvador to stop using the bitcoin cryptocurrency as legal tender citing concerns regarding surrounding financial stability as evidenced by the digital currency’s volatility.
The recent development comes hot in the heels of a recent Bitcoin price crash that saw it hit the very low figures against the background of its 2021 performance. As such, the virtual coin fall to a six-month low with a very slight rebound that has sent investors into a frenzy.
El Salvador Made History
In June 2021, we reported that El Salvador made history after after becoming the first nation on earth to adopt the Bitcoin cryptocurrency as legal tender.
The news broke out right after reports surfaced about the decision by the country’s Congress to approve El Salvador President Nayib Bukele’s proposal to adopt the virtual currency in a move that sent shockwaves across the crypto community.
The landmark decision was reflected in the lawmakers vote count in which 62 legislators out of 84 voted in favour of the need to design a law that would facilitate the country’s Bitcoin adoption.
The notable event gave rise to immediate concerns about the potential ramifications that would be felt within the country’s financial program with the IMF. Then, President Bukele expressed strong belief that the virtual currency would go a long way to transform lives through a disruptive currency.
Twitter Goes Crazy
In reaction to the IMF’s latest criticism of El Salvador’s decision to adopt Bitcoin as legal tender, President Bukele mocked the international institution on Twitter by posting a Simpsons-themed meme bearing the text: “I see you, IMF. That’s very nice” (See screenshot below).
Figure 1: El Salvador President Nayib Bukele mocking the IMF stament via Twitter.
What’s interesting, Bukele revealed that his country had taken full advantage of the Bitcoin price drop by purchasing 410 bitcoin for $15 million as a top up to its already-existing stash of 1,500 bitcoin.
Further, Elon Musk, who has openly been showing support for the alternative coin Dogecoin, responded to another Bukele tweet joking about getting a real job like “flipping burgers” after a bitcoin price crash by writing: “I will eat a happy meal on tv if @McDonalds accepts Dogecoin” – to which McDonalds replied, “only if @tesla accepts grimacecoin”.