2021. El Salvador caught the world’s attention The first country made by cryptocurrency legal tenderIn addition to US dollars.
Last December, since the price of Bitcoin violated $ 100,000 (77,765 pounds), young president Naiib Bukele published on social media that the Urgt’s middle American nation had more than doubled value. But now – as a price for insurance $ 1.4 billion (1.1 billion 1.1 billion loans from the international monetary fund – the country had to return their controversial policies Bitcoin.
Salvadoran companies are now free to decide whether to be accepted Bitcoin or not, and taxes are no longer paid in cryptocurrency. “The potential risks of the BitCoin project will be reduced significantly, in accordance with the Fund’s policies,” IMF said. Efficient, the Days of Bitcoin as a legal tender in El Salvador are done.
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‘Cryptocurrenci Raj’
Bukele’s embrace Bitcoin was part of an attempt to “ribs and depleted” the nation as a “surfing and a surfing and cryptocurrency,” he said Financial times. He announced plans Build “Bitcoin City” In the jungle, “Geothermal energy on Volcan’s slopes”.
The President claimed a cryptocurrency that “70% of salvadorans would bring traditional banks into the financial system,” he said France24. “Switching a warning about volatility risks,” he is a scoring “undetected amount of public money in cryptocurrency”.
But the IMF always opposed Bukele’s adoption of Bitcoin, he said that BBCAnd warned that it would be an obstacle to any financial assistance. For a long time, the Salvadoran economy is “Teetered on the edge of the default”, because the IMF remained “cautious” lending in the country, while unstable currency – with “potential use in money laundering and other crimes,” he said Economist.
“More costs of the benefit”
El Salvador is still a “focal point for the global Bitcoin community,” he said Forbes. But the mood is now “somewhat bribed” among crypto enthusiasts, one local journalist told the journalistic site.
“Many international Bitcoiner moved to El Salvador for law Bitcoin; some salvadorans returned,” Joe Nakamoto said. “Now doubt about the future of the country in connection with Bitcoin grabbed.”
But Bitcoin’s “demission can be more blessing than concession,” economist said. Cripto brought El Salvador “more costs than the benefit”. Very promised investment and tourism “are a little beer”, while financial gains were “meaningless at best”, because the currency “was never caught”. According to the survey published in January Universidad CentroAmericana, 92% of Salvadorans did not use it in all last year.
All in all, the policy cost $ 375 million (291 million pounds), in accordance with the estimates of the Moody’s assessment agency, which “far exceeds profit on Bitcoin, which could still evaporate.” There are still no cities Bitcoin.
Bukele’s “Kriptokurca obsession has slightly made Ellador’s economic distress,” the magazine said. He is “only the latest crypto-utopian to see that his wild ideas dissolve in contact with reality.”
