Investing incryptois a risky business particularly when youre betting with a countrys future.
Its nonetheless a gamble that El Salvadors president has been eager to make.
Nayib Bukeles splurging onbitcoinhas been lauded by crypto advocates, but criticized in the traditional financial world.
The IMF has been among his most vociferous detractors.
The International Monetary Fund has repeatedly urged El Salvador to ditch Bitcoins legal sentence much to Bukeles chagrin.
Heres a brief history of the dispute between the lender and the Central American nation.
However, the proposal sparks concerns about the IMF deal.
The digital asset is set to join the US dollar as legal tender in 90 days.
The bitcoin/dollar exchange rate will be set by the market.
The#BitcoinLawhas been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
History!#Btc??
The lender says the move could financial stability and integrity.
The move means citizens can use the cryptocurrency to make purchases, pay taxes, and send remittances.
A new digital means of payment the Chivo e-walletis also introduced.
Citizens who download the app are promised a$30 reward.
Theinitial rollout is marredby technical issues, protests, and slow adoption.
Critics fear the move will plunge the country into further debt.
However, not all of his attempts to buy the dip are perfectly timed.
Missed the f***ing bottom by 7 minutes ?
Instead,he saysthe projects benefits will be a focus of the talks.
We dont see any risks.
Perhaps, upside risks.
[Bitcoin will] become a payment system, a system for financial inclusion.
Half of the $1 billion in bonds will go towards building energy and mining infrastructure.
The other half will be invested in bitcoin.
The future.https://t.co/fFCWjcjFqm
Nayib Bukele ?
Bukele points to the positives.
He notes that the IMFs evaluation includes considerable praise of his government.
Transparency in the use of#COVID19funds.
Strong REDUCTION of CRIME.
Economy will grow 10% this year.
Source:https://t.co/LoRQcKuDl7
Nayib Bukele ?
They also express concerns over the risks associated with issuing bitcoin-backed bonds.
In keeping with his image as an edgelord, Bukele responds with a meme.
https://t.co/s1F5kwOBEnpic.twitter.com/LD0I2dBHha
Nayib Bukele ?
(@nayibbukele)January 26, 2022
The president is not alone in mocking the IMF.
Their impasse may continue until bitcoin reaches a momentous tipping point.
Story byThomas Macaulay
Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he e(show all)Thomas is the managing editor of TNW.
He leads our coverage of European tech and oversees our talented team of writers.
Away from work, he enjoys playing chess (badly) and the guitar (even worse).
