El Salvador Firm on Bitcoin as Legal Tender, Despite IMF’s Repeated Calls for Reconsideration

El Salvador’s Vice President, Félix Ulloa, stated in an interview that bitcoin will continue to be legal tender in the country during President Nayib Bukele’s second term, despite the International Monetary Fund’s (IMF) ongoing calls to drop the cryptocurrency. Ulloa emphasized the government’s commitment to maintaining the legal status of bitcoin and noted that recent developments, such as the approval of spot bitcoin exchange-traded funds (ETFs) by the U.S. SEC, strengthen El Salvador’s resolve. The Salvadoran government plans to proceed with the launch of bitcoin-backed bonds and the construction of Bitcoin City if Bukele’s party secures victory in the upcoming elections.

The government’s confidence in Bitcoin is underlined by recent global developments, such as the SEC’s approval of bitcoin ETFs, which El Salvador sees as an endorsement of its stance. The decision to move forward with bitcoin-backed bonds and the creation of Bitcoin City reflects a bold and innovative approach to leveraging cryptocurrency for economic development. The upcoming elections will play a crucial role in determining the trajectory of El Salvador’s crypto journey, with potential implications for the broader adoption of digital currencies on a national scale.*