IMF AND El Salvador’s Bitcoin Strategy Sees Progress

Further development is shown in the talks between IMF and El Salvador concerning the latter’s adoption of Bitcoin.

Moreover, in the recent negotiations with El Salvador on the approach to Bitcoin, the International Monetary Fund (IMF) said that there is some progress. This update has come over two years since the El Salvador and IMF discussions on a policy in relation to Bitcoins slowed down.

But some of the recommendations are as follow Emphasis on Enhancement of Financials and Governance.

The last discussions have been made taking reference with measures to stabilize the revenue of the state, further working on banking sector and non-transparent use of Bitcoin. Namely, the agendas examined the ways of mitigating the risks associated with the Bitcoin business and securities of El Salvador.

These risks have not materialized and therefore it is almost impossible to with certainty come up with the probable risks that can be associated with a certain business venture.

Despite certain adverse effects are seen to occur they are yet to occur due to El Salvador adopting Bitcoin, The IMF has said that both of them agree to honor their rights as well as duties towards each other to prevent possible problems in the financial sector when linked to Bitcoin.

The International Monetary Fund for the first time admits to the previous criticism on the use of Bitcoin.

The latest statement of the IMF concerns a change of tune that it expressed after having criticized earlier this year El Salvador’s decision to make Bitcoin a legal tender. After that, El Salvador has launched some other more pro-Bitcoin policies despite the recommendations of the IMF. The IMF is now starting to retreat by claiming that such risks have not realised as per the basic idea expected of it.

The fairest use of Handling is to take previous remarks and apply a different tone to them.

The most recent statement made by the IMF has been accused by El Salvador’s Senior Bitcoin adviser Max Keiser as a flip-flop of the IMF’s previous pitch on El Salvador adopting the use of Bitcoin which was portrayed as a very dangerous thing to do for this country. Another type of evidence is the price of El Salvador’s sovereign bonds which also signals to investors that the country is now “de-risked” because of Bitcoin.

Putting her stakes in BTC more solid, El Salvador has kept on with the buying trail much to the dislike of critics.

On the other hand, El Salvador has been more intentional on stacking even more Bitcoins for the past year through daily purchase strategies. Thus, the experience of this country demonstrates that owning more than 5,800 BTC that equals $332 million, it is possible to state that the authorities are interested in Bitcoin as one of the financial tools.

The progression of what happened with the negotiation of the IMF and El Salvador regarding Bitcoin and the shift of the stance of the IMF at the moment highlights that while El Salvador’s bitcoin policy may seem radical and have backlash it can slowly shift from the bubble and the adversary classification and can turn into an acceptance.

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