Is IMF ‘on the wrong side of history’ as it issues yet another warning to El Salvador

ambcrypto.com:

There have been several critics of El Salvador’s policy to accept Bitcoin as legal tender. In the past, the International Monetary Fund (IMF) has made several recommendations against the decision. Now, in a recent release, IMF has said that El Salvador should dissolve its $150-million trust fund incorporated at the time of its policy decision. Further adding,

“Staff also recommends ending US$30 subsidy to every new Chivo user and liquidating FIDEBITCOIN—returning unused funds to the Treasury.”

Let’s recall that following its September decision, El Salvador had become the first country to introduce the Chivo ecosystem to transact BTC. And since then, the virtual asset has formed part of the country’s treasury. If media estimates are to be believed, El Salvador recently added 410 BTC to its existing ownership of 1,391 Bitcoins.

IMF has also pointed at significant risks that Bitcoin use carries along with strict oversight needed for Chivo e-wallet.

In response, deVere Group’s Nigel Green has stated that IMF’s recommendations show the institution is “on the wrong side of history.” He opined that while the ‘situation in El Salvador needs to be monitored carefully,’

“But the IMF asking a pioneering sovereign nation to drop a future-focused financial policy that attempts to bring it out of financial instability and a reliance on another country’s currency shows the institution to be on the wrong side of history.

The CEO of the financial services firm is a crypto bull who believes that ‘Bitcoin is the world’s largest digital currency.’ And moving forward, “digital is the inevitable future of money.”

However, it is worth noting that rating agency Moody’s had increased El Salvador’s risk profile only some time back. According to