You are here: Home > Blog > El Salvador Buys the Dip. IMF Warns Nation against Using Bitcoin as Legal Tender


CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

El Salvador Buys the Dip. IMF Warns Nation against Using Bitcoin as Legal Tender

El Salvador Buys the Dip. IMF Warns Nation against Using Bitcoin as Legal Tender

February 01, 2022

The President of El Salvador, Nayib Bukele, announced on Twitter that his country recently spent around $15 million on 410 bitcoin.  

El Salvador started buying bitcoin in September last year after it began using the top cryptocurrency as legal tender. The country now holds 1,801 bitcoin acquired through the recent price dips.  

El Salvador installed bitcoin vending machines, launched the Chivo wallet app, and started mining bitcoin with volcanic energy. A few weeks ago, President Bukele unveiled plans to build a Bitcoin City. The country hopes to attract bitcoiners and crypto companies through its crypto-friendly attitude.

The IMF Wants the Country to Abandon Bitcoin as Legal Tender

The IMF sees bitcoin as a threat to El Salvador’s financial stability. It also dislikes Bukele’s plans to raise $1billion through bitcoin bonds. Half of the bitcoin bond funds would go toward further bitcoin purchases. The other half would finance mining infrastructure and energy projects.  

El Salvador needs the support of the IMF, however. It is currently looking to secure a $1.3 billion loan. The bitcoin experiment may impede its ability to secure the funds.  


Bitvavo
  • Bitvavo: Buy Bitcoin safely and easily at one of Europe's leading exchanges.
  • Buy, sell, and store more than 150 digital assets
  • Low trading fees: 0.25%
  • Welcome bonus: Trade € 1000 without commission
  • Visit Bitvavo »

Tradingview
  • Tradingview: Free Charts, Quotes and Trade Ideas
  • Great charting tool for forex traders
  • The leading social network for traders and investors
  • Visit Tradingview »


Compare brokers

Trade Cryptocurrency*
*Availability subject to regulation
SPECTRE
  • SPECTRE: The future of Digital Options, Forex and CFD trading
  • Broker-less trading platform
  • Powered by blockchain and a decentralized autonomous liquidity pool
  • Free demo »

Bitvavo
  • Buy, sell, and store more than 150 digital assets at one of Europe's leading cryptocurrency exchanges
  • Visit Bitvavo »

Fortrade

ICMarkets

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Our website is free for our visitors, but in order to provide this free service we may be compensated, receive commissions or advertising fees from brokers listed on our website.