In a move that sparked controversy, the International Monetary Fund (IMF) has called on El Salvador to reconsider its plans to increase its exposure to Bitcoin. The call was met with strong reactions from the crypto community, with some members interpreting it as a bullish signal for BTC, according to a February 14th report.
Some saw the IMF’s move as an attempt to spread fear, uncertainty, and doubt (FUD) or discourage other countries from following El Salvador’s example. One Twitter user argued that the IMF wants to scare other countries away from the “excellent example” set by El Salvador and urged others to adopt BTC to help close central banks.
Others saw the IMF’s suggestion as a bullish signal for Bitcoin. According to one community member, the IMF’s hold on the developing world is slipping away, and BTC will march on regardless of the organization’s stance.
El Salvador’s adoption of BTC has already influenced other countries to become more BTC-friendly. Brazil recently approved a law that legalizes crypto as a means of payment, although it does not make BTC and other cryptocurrencies legal tender.
Despite El Salvador’s resilience in the bear market, the IMF recommended giving up BTC over economic risks. Some members of the crypto community, however, called out inconsistencies in the IMF’s stance, pointing to projections of El Salvador’s GDP growth.
As Bitcoin’s ecosystem continues to grow and strengthen amid an ever-inflating fiat economy, the crypto community is looking for new ways to leverage its potential.
Bitcoin’s recent developments, including the creation of its non-fungible token protocol called Ordinals and the establishment of the BTC-backed bond, dubbed the “Volcano bond,” in El Salvador, have added to the cryptocurrency’s growing appeal.
El Salvador’s Plans For Bitcoin
El Salvador has announced several plans for BTC in the country, including the daily purchase of one BTC and the establishment of a legal framework for a BTC-backed bond called the “Volcano bond,” which will pay down sovereign debt and fund the construction of “Bitcoin City.”
Despite the IMF’s suggestion, El Salvador appears to be moving forward with its plans for BTC. Its adoption of Bitcoin has already inspired other countries to consider legalizing and adopting cryptocurrencies, indicating a potential shift away from traditional central banking systems.
As Bitcoin’s user base and capabilities continue to expand, its position as a viable alternative to fiat currency may become even stronger.
Related Reading | Ethereum Staking Platform Faces Dilemma Over Its $30M Treasury