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    El Salvador Defies IMF, Upholds Bitcoin as Legal Tender Amidst Loan Negotiations

    El Salvador stands firm on bitcoin as legal tender, defying IMF's renewed calls. Vice President Ulloa asserts commitment amidst loan negotiations. Plans for Bitcoin City and bitcoin-backed bonds if re-elected. IMF urges reconsideration citing risks.

    • El Salvador Stands Firm: Vice President Ulloa asserts bitcoin’s legal tender status.
    • IMF’s Repeated Calls: IMF urges removal of bitcoin’s legal tender status due to associated risks.
    • Bitcoin City Plans: Salvadoran government plans bitcoin-backed bonds and Bitcoin City if re-elected.
    • SEC Approval Strengthens Resolve: Recent SEC approval of bitcoin ETFs reinforces El Salvador’s commitment.

    El Salvador’s Bitcoin Commitment Unshaken

    El Salvador reiterates its dedication to bitcoin despite the IMF’s persistent calls for the country to abandon the cryptocurrency as legal tender. Vice President Félix Ulloa, in an interview with Reuters, affirmed that not only will El Salvador maintain its bitcoin law but also emphasized the cryptocurrency’s unparalleled credibility globally.

    IMF’s Stand and El Salvador’s Response

    The IMF, after consultations with El Salvador, published a report stressing the importance of financial inclusion while expressing concerns about the risks associated with bitcoin’s legal tender status. Despite repeated warnings from the IMF since November 2021, El Salvador remains resolute in upholding bitcoin, citing recent SEC approval as further validation.

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