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El Salvador adds to it's Bitcoin stash as the IMF weighs in

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@melbourneswest
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El Salvadorian president Nayib Bukele announced that he added 100 more Bitcoin to the nations stash in a tweet on Saturday. It comes as the Bitcoin price dipped bringing down the sector and applying pressure on Alt coins. Much like the 2020 Market crash which saw Bitcoin trade for far lower than $US10,000 per coin. The new COVID-19 strain is being blamed for the crash as investors seek to liquidate their positions into fiat source

El Salvador's move to buy more Bitcoin comes at a time that it continues to implement its goal of establish an entire city that is Bitcoin friendly.

The President announced that the new City will be built along the Gulf of Fonseca near a volcano which the government plans on using to power Bitcoin mining operations and the city source

The president went on to state that the city will be in the shape of a circle and in the middle a plaza will be built with a Bitcoin symbol and the city will have no income, capital gains, payroll or property taxes. It will be services by airports, rail and a port with all the current trends claiming that El Salvador will become the Singapore of Latin America.

The IMF has raised significant concerns with El Salvador in regards to the haste in which Bitcoin was rolled out as legal tender and are urging the nation to roll back or tighten the scope of the policy. This is due to the IMF's view that Bitcoin has significant risks for financial stability, integrity and consumer protections which was published in a report which can be found here.

It's also been recently identified that the President or El Salvadorian Government did not discuss with the agency their plans to establish a Bitcoin City. The IMF also held concerns around the regulations and oversight of the Chivo wallet and sought action from the nation to tighten it source.

There has been no response from El Salvador at current.

What are your thoughts on the subject, do you think El Salvador is moving too fast and will it have negative consequences for the nation?

Let me know in the comments section below.

Images sourced from CANVA Pro Subscription. This is not financial advice and readers are advised to undertake their own research or seek professional services

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