愛污传媒

Skip to main content

El Salvador angrily rejects IMF call to drop Bitcoin use

This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah. (AP / Rick Bowmer) This April 3, 2013 file photo shows bitcoin tokens in Sandy, Utah. (AP / Rick Bowmer)
Share
SAN SALVADOR, El Salvador -

The government of El Salvador on Monday rejected a recommendation by the International Monetary Fund to drop Bitcoin as legal tender in the Central American country.

Treasury Minister Alejandro Zelaya angrily said that 鈥渘o international organization is going to make us do anything, anything at all.鈥

Zelaya told a local television station that Bitcoin is an issue of 鈥渟overeignty.鈥

鈥淐ountries are sovereign nations and they take sovereign decisions about public policy,鈥 he said.

The IMF recommended last week that El Salvador dissolve the US$150 million trust fund it created when it made the cryptocurrency legal tender and return any of those unused funds to its treasury.

The agency cited concerns about the volatility of Bitcoin prices, and the possibility of criminals using the cryptocurrency. After nearly doubling in value late last year, Bitcoin has plunged in value.

Zelaya said El Salvador has complied with all financial transaction and money laundering rules.

The trust fund was intended to allow the automatic conversion of Bitcoin to U.S. dollars - El Salvador's other currency - to encourage people wary of adopting the highly volatile digital currency.

The IMF also recommended eliminating the offer of US$30 as an incentive for people to start using the digital wallet 鈥淐hivo鈥 and increasing regulation of the digital wallet to protect consumers. It suggested there could be benefits to the use of Chivo, but only using dollars, not Bitcoin.

鈥淚n the near-term the actual costs of implementing Chivo and operationalizing the Bitcoin law exceed potential benefits,鈥 the report said.

Salvadoran President Nayib Bukele had been dismissive of the IMF's recommendation's concerning Bitcoin.

Government officials told the IMF that the launch of 鈥淐hivo鈥 had significantly increased financial inclusion, drawing millions of people who previously lacked bank accounts into the financial system. They also spoke of the parallel tourism promotion targeting Bitcoin enthusiasts.

The government did not see a need to scale back the scope of its Bitcoin law, but agreed regulation could be strengthened, according to a report.

Bukele led the push to adopt Bitcoin as legal tender alongside the U.S. dollar. El Salvador's Legislative Assembly made the country the first to do so in June and the Bitcoin law went into effect in September.

El Salvador and the IMF have been negotiating US$1.3 billion in lending for months.

CTVNews.ca Top Stories

Elections BC released its first partial results of the final count in B.C.'s 2024 provincial election Saturday afternoon, and the data shows NDP candidates gaining in some tight races.

Ontario Provincial Police say a 16-year-old has been charged with second-degree murder after a 15-year-old was found dead at a home in Perth, Ont. Friday afternoon.

Angela Salvatore had been away from her father's hospital bedside for just over an hour when she says she got a frantic call from a nurse, pleading with her to calm him down.

A veteran Ottawa journalist is firing back against what he says are "entirely false" claims by a former Conservative cabinet minister that he acted as a Russian agent.

Canadian Ryan James Wedding finished in 24th place in the parallel giant slalom at the 2002 Winter Games in Salt Lake City, but the snowboarder wouldn鈥檛 go on to improve his results in Torino four years later.

Local Spotlight

A new resident at a Manitoba animal rescue has waddled her way into people's hearts.

Hundreds of people ran to the music of German composer and pianist Beethoven Wednesday night in a unique race in Halifax.

He is a familiar face to residents of a neighbourhood just west of Roncesvalles Avenue.

A meteor lit up our region's sky last night 鈥 with a large fireball shooting across the horizon over Lake Erie at around 7:00 p.m.

Residents of Ottawa's Rideauview neighbourhood say an aggressive wild turkey has become a problem.

A man who lost his life while trying to rescue people from floodwaters, and a 13-year-old boy who saved his family from a dog attack, are among the Nova Scotians who received a medal for bravery Tuesday.

A newly minted Winnipegger is hoping a world record attempt will help bring awareness for the need for more pump track facilities in the city.

A Springfield, Ont. man is being hailed a 'hero' after running into his burning home to save his two infant children.

Hortense Anglin was the oldest graduate to make her way across the platform at York University's Fall Convocation ceremony this week. At the age of 87, she graduated with an Honours degree in Religious Studies.

Stay Connected