According to a news agency report, the IMF last week recommended that El Salvador dissolve the $150 million (about Rs 1120 crore) trust fund. It was created when cryptocurrencies were declared legal tender in the country. The IMF had asked El Salvador to return unused funds to the Treasury.
The IMF had expressed concern over the volatility of the bitcoin price and the possibility of criminalization of many people using the cryptocurrency. Significantly, after nearly doubling in value at the end of last year, the value of bitcoin has now declined. As of 10 am on February 1, the price of bitcoin in India was Rs 30.73 lakh.
Zelaya said that El Salvador has complied with all financial transactions and money laundering regulations. It has also been said that the purpose of the trust fund was to allow the exchange of bitcoins for US dollars. Along with this, people had to be encouraged for digital currency.
The IMF also recommended that the offer of $30 (approximately Rs 2,230) be scrapped to introduce the use of Chivo wallet and as an incentive for consumer safety. The Monetary Fund suggested that profits from using Chivo could be realized by using only the dollar. It was only after this that Salvadoran President Nayib Bukele rejected the IMF’s recommendations.
<!–
–>
For the latest tech news, smartphone reviews and exclusive offers on popular mobiles, download the Gadgets 360 Android app and follow us on Google News.
Related news
,