President of El Salvador Nayyib Bukele on Thursday, June 10, will meet with representatives of the International Monetary Fund (IMF). About it reported crypto investor Alistair Milne citing an interview with the head of the republic. The topic of the emergency meeting remains unknown, but the IMF decided to meet with the head of the republic after bitcoin became legal tender in El Salvador.
“They should be happy about this”
IMF meeting with El Salvador on Thursday— Alistair Milne (@alistairmilne) June 9, 2021
El Salvador’s Congress approved Nayib Bukele’s proposal to accept Bitcoin as legal tender. The vote on the bill received 62 votes out of 84. Thus, El Salvador became the first state in the world to officially recognize the cryptocurrency.
At the same time, El Salvador added that the US dollar will also remain legal tender. All transactions on the territory of the republic will be linked to the exchange rate in the US currency. However, according to Reuters, not everyone liked the initiative of El Salvador. For example, legalizing bitcoin could call into question a loan from the IMF in the amount of more than $ 1 billion
El Salvador against all
Relations may deteriorate as Bukele’s party fell out with Washington in May, removing five Supreme Court justices and the chief prosecutor from office, Reuters said. Top manager of the American broker Amherst Pierpoint Securities Siobhan Morden believes that the legalization of bitcoin “will further complicate and slow down technical discussions with the IMF.” When exactly Bukele’s meeting with the IMF will take place is officially unknown.
News from El Salvador was reflected in the price of bitcoin. At the time of this writing, the price of bitcoin in the BTC / USDT pair is $ 34.6 thousand. However, on a weekly scale, bitcoin is still in the red by 9%.
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