El Salvador’s current vice president, Felix Ulloa, has reportedly declared that Bitcoin will remain legal tender in the country if the current President secures reelection.
According to a Reuters report, Ulloa claimed that this position on Bitcoin’s legal tender status would remain despite the International Monetary Fund’s (IMF) pleas to reconsider it. He added that the approval of spot Bitcoin ETFs in the United States three weeks ago has only strengthened the government’s stance on the cryptocurrency.
The Vice President made these comments as the country prepares for its forthcoming presidential election, in which President Nayib Bukele reportedly anticipates a landslide victory. He further noted that should President Bukele and his New Ideas Political Party win the Sunday election, they will carry on with the plans for Bitcoin-backed bonds.
It is worth noting that the President Bukele-led government has been under pressure from the IMF to reconsider its stance on Bitcoin since 2021. to rethink his stance about Bitcoin, citing risks related to its adoption. The global agency urged the El Salvador government to streamline the scope of Bitcoin law and terminate its status as a legal tender. The agency further buttressed on the use of Bitcoin on financial integrity and stability, noting that Bitcoin—as well as other cryptocurrencies— is extremely volatile.
However, the President and his executives remain optimistic towards Bitcoin and have even encouraged local investors and citizens to participate in the token’s market.
El Salvador’s venture into Bitcoin began in 2021 as President Bukele announced the country’s adoption of Bitcoin as a legal tender. The development was met with a variety of reactions, as some celebrated the development, while others criticized the adoption of Bitcoin. Since then, the President has spearheaded several developments towards the advancement of Bitcoin in El Salvador. One notable project, the Bitcoin Volcano bonds, which were approved by the El Salvador government in December 2023, is scheduled to launch during the first quarter of 2024.
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