El Salvador’s government announced that they would accept Bitcoin as a legal tender by law. This news, alongside Elon Musk’s tweet about accepting Bitcoin as a payment method, sent the coin on a healthy upward trend. Bitcoin touched $40000 for a short moment as the news developed. The move was first proposed by the country’s president, Nayib Bukele, who said that he believes Bitcoin will facilitate lower remittance fees and attract investment.
The El Salvador law gave the nation just three months to roll the plan out, which is not a simple task given that no country has ever used Bitcoin, or any other cryptocurrency, as legal tender. As the rollout is facing challenges, El Salvador government turned to the IMF and World Bank for help. While the IMF offered some guarded assessment for the Bitcoin move, its spokesman Gerry Rice said “ the adoption of Bitcoin as legal tender raises a number of macroeconomic, financial, and legal issues that require very careful analysis.” Meanwhile, the World Bank just turned down the proposal for its lack of transparency and negative environmental impact.
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