El Salvador is being told by the International Monetary Fund (IMF) to drop bitcoin as legal tender after adopting the cryptocurrency in September. The IMF is citing financial stability and consumer protection concerns.
According to the Zionist controlled institution there are large risks associated with the use of bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.
The statement also urged local authorities to “narrow the scope of the bitcoin law by removing bitcoin’s legal tender status and raised concern over the issuing of Bitcoin-backed bonds.
Last year, the Central American nation became famous around the globe as the first country to adopt bitcoin as legal tender alongside the U.S. dollar. The goal was to make finance more inclusive and save residents money on remittance commissions.
The IMF’s warning comes at a time when bitcoin lost 50% from its all-time highs of $69,000 reached in November as the whole crypto market saw massive selloffs along with tech stocks amid a risk-off environment in the USA.
After briefly falling below $35,000, bitcoin is now attempting to recover, last trading $37,769, up 1% on the day.
But analysts are warning that the crypto market won’t be able to turn the bearish page until stocks have accepted the Federal Reserve’s monetary policy tightening outlook.
Bitcoin has surged 15% from the lows of $33,000 on Monday, whilst funding rates have turned very negative, signaling that short-positioned traders are dominating the derivative market, said GlobalBlock analyst Marcus Sotiriou.
This indicates that Bitcoin’s bounce was driven by spot rather than derivatives, which is confluent with the significant bidding seen on Coinbase.
The fact that funding is negative suggests there is still fear in the market, as participants are generally shorting this rally. Where ever IMF mingles, damage is about to occur.
Kitco / ABC Flash Point News 2022.