El Salvador president still predicts bitcoin surge

El Salvador’s president Nayib Bukele believes that bitcoin (BTC) is due a surge in value, despite there being a dip in the crypto market at the start of the year.

BTC and ethereum have both taken a steep dive, leading some to suggest BTC’s days are numbered.

Recently, the International Monetary Fund (IMF) asked El Salvador to remove BTC as its legal tender. “Crypto-assets can pose significant risks and effective regulatory measures are very important when dealing with them”, it said.

Since the country became the first to adopt BTC in 2021, it has maintained high hopes for the currency and has been buying more, recently purchasing an additional 410 BTC to add to its reserves, amid the crash.

The president has not shied away from the fact he supports the coin. According to him, BTC is set for a steady rise due to having a limited 21 million in supply.

He said that if the 50 millionaires in the world wanted an equal share, it would be impossible. And that even if 25 millionaires wanted one BTC each, then the supply would not accommodate that.

However, BTC has continued to decrease, with the value standing at $28,685.21at the time of writing.

The IMF hasn’t given up and continues to urge El Salvador to rethink its buying strategies. When the coin lost $10,000 in just over five days, countries that held BTC, including El Salvador suffered immensely.

Still, the president has shrugged off advice from the IMF, which recommended El Salvador dissolve the $15m trust fund created when the cryptocurrency was made a legal tender, and return the unused funds to its treasury.

Commenting on the IMF’s requests, treasury minister Alejandro Zelaya said: “No international organization is going to make us do anything, anything at all.”

Although El Salvador has complied with the money laundering and financial transaction rules; according to a report, the government has agreed regulation could be strengthened.

However, there are still no commitments from the country to scale back its BTC supply.

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Updated: 02/02/2022 — 20:00