To call El Salvador a global experiment would not be wrong. Being the first country in the world to accept Bitcoin as legal tender has suddenly put this island country on the world map. El Salvador was known as a tax heaven for many years prior to that. However, nothing had an impact as significant as Bitcoin’s. Not all governments and international bodies took it in a positive stride, the International Monetary Fund being the most important.
In a recent statement published by the International Monetary Fund, they have stated that El Salvador’s Bitcoin Laws pose a serious threat to their national integrity and economic stability. El Salvador has recently declared that it will buy more Bitcoin bonds and plans to build the world’s first Bitcoin city. According to experts, these plans need serious consideration before putting into application.
A Bitcoin city would be the first of its kind and El Salvador has more ambitious plans of powering it from an active volcano. All of these plans did not strike the right chord with international monetary bodies, and now they are coming out in public. The statement from the International Monetary Fund was the first of its kind, and many fear that it will be a hindrance to El Salvador’s grand Bitocin plans. El Salvador’s President Nayib Bukele has always been adamant in his Bitcoin plans for the country. It will be interesting to see what the tussle between the government and the International Monetary Fund leads to.