No international organization is going to make us do anything, anything at all, says El Salvador’s Treasury Minister Alejandro Zelaya, who believes bitcoin is an issue of sovereignty. This comment comes after the International Monetary Fund recommended the Latin American country to dissolve the $150 million trust fund it created when it made bitcoin a legal tender.
Zelaya said countries are sovereign nations and they take sovereign decisions about public policy. He highlighted that El Salvador has complied with all financial transactions and money laundering rules.
The IMF is a cryptocurrency critic and has drawn light on Bitcoin’s high volatility and the possibility of criminals and terrorists using cryptocurrencies. As such, the institution has been time and again urging El Salvador to do away with bitcoin as legal tender. Last week, the IMF recommended eliminating $30 as an incentive for people to start using Chivo the digital wallet. It called for increased regulation of the digital wallet to protect consumers. IMF believes that in the long run, the actual costs of implementing Chivo and Bitcoin law will exceed the potential benefits if any.
However, the IMF’s comments haven’t gone down well with El Salvadoran President Nayib Bukele and the government officials alike. They maintain that the launch of the digital wallet has significantly increased financial inclusion and drawn millions of people, who lacked bank accounts, into the country’s financial system.
However, the government agrees on the need for strengthened regulation. Bukele foresees a mass adoption of cryptocurrencies, especially bitcoin which has performed dismally last month. He says it’s just a matter of time for BTC to bounce back and take the crypto market forward.