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IMF Wants El Salvador To Stop Use Of Bitcoin

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IMF Wants El Salvador To Stop Use Of Bitcoin

Warning of “large risks,” the International Monetary Fund (IMF) has asked El Salvador to rethink its stance on using Bitcoin as its legal tender.

In its “Article IV Consultation with El Salvador” released on Tuesday, the IMF “urged the authorities to narrow the scope of the Bitcoin law by removing bitcoin’s legal tender status.”

“Since September 2021, the government has adopted Bitcoin as legal tender. The adoption of a cryptocurrency as legal tender, however, entails large risks for financial and market integrity, financial stability, and consumer protection. It also can create contingent liabilities,” the statement said.

The call by the Washington-based financial body came as the cryptocurrency market dropped in value for its fifth week, erasing over $1 trillion and wider volatility on Wall Street.

Last September, El Salvador became the first country in the world to embrace digital money, allowing consumers to use it in all transactions. The Latin American country planned to build the world’s first “Bitcoin City“, funded initially by bitcoin-backed bonds.

President Nayib Bukele sought a $1.3 billion IMF loan, but this has been delayed due to the volatility at the crypto market.

Mr Bukele had disclosed that there would be no property, income or municipal taxes and that the city would have zero-carbon emissions.

READ ALSO: El Salvador Becomes First Country To Adopt Bitcoin For Use As Legal Tender

He explained that the project would attract investors, adding that the city would have residential areas, malls, restaurants and a port, and sustainable public transport.

In its statement, the IMF also warned that at current debt spending levels, El Salvador’s public debt could rise to about 96 per cent of GDP in 2026, calling it an “unsustainable path.”

 

 

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Biden Endorses Kamala Harris As Presidential Nominee

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By John Michael Ojo

President Joe Biden has named Vice President, Kamala Harris as his preferred presidential candidate for his Party

Biden stated this on Sunday shortly after he announced his withdrawal from the presidential race in a now viral post on his official X handle.

Biden who had earlier claimed that his withdrawal from the November presidential election was in the best interest of his party, said; “My fellow Democrats, I have decided not to accept the nomination and to focus all my energies on my duties as President for the remainder of my term.

“My very first decision as the party nominee in 2020 was to pick Kamala Harris as my Vice President. And it’s been the best decision I’ve made.

“Today I want to offer my full support and endorsement for Kamala to be the nominee of our party this year.

“Democrats—it’s time to come together and beat Trump. Let’s do this,” he added.

Kamala Harris, 59, is the first female vice president and the highest-ranking female official in U.S. history, as well as the first African-American and first Asian-American vice president.

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BREAKING:US President Biden Withdraws From Re-election Bid

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United States President Joe Biden

United States President Joe Biden has announced that he will end his candidacy for re-election, saying “it is in the best interest of my party and the country”.

It comes four months before Americans go to the polls, upending the race for the White House.

It follows weeks of intense pressure from fellow Democrats after a faltering debate performance against Republican Donald Trump at the end of June.

In a letter posted to his social media account, he said it had been the greatest honour of his life to serve as president.

“And while it has been my intention to seek reelection, I believe it is in the best interest of my party and the country for me to stand down and to focus solely on fulfilling the duties as President for the remainder of my term”.

He said in his statement he would address the nation on the matter next week.

President Biden thanked his Vice President Kamala Harris, saying she was an “extraordinary partner”.

 

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Trump Breaks His Silence After Assassination Attempt

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By John Michael Ojo

Former US president and the presidential candidate of the Republican Party, in the forthcoming November 5 general elections, Donald Trump, has stated that the shooter at his Butler, Pennsylvania rally yesterday has been killed by the Secret Service.

Trump who revealed that the bullet went through his ears, stated this in a statement made available on Sunday morning.

While the 45th president of the United States, sustained a minor injury, the incident however, left one person dead and another seriously injured.

Trump who extended his condolences to the family of the victim, thanked Americans for their support and urged them to remain resolute towards the election.

He said: “I want to thank The United States Secret Service, and all of Law Enforcement, for their rapid response on the shooting that just took place in Butler, Pennsylvania.

“Most importantly, I want to extend my condolences to the family of the person at the Rally who was killed, and also to the family of another person that was badly injured.”

The former president went further to provide details of his injury stating, “I was shot with a bullet that pierced the upper part of my right ear. I knew immediately that something was wrong in that I heard a whizzing sound, shots, and immediately felt the bullet ripping through the skin. Much bleeding took place, so I realized then what was happening.”

His statement also revealed that the shooter is now dead, though he added, “Nothing is known at this time about the shooter.”

Meanwhile, Trump’s predecessor and successor, Barack Obama and Joe Biden respectively, have both condemned the assassination attempt on Trump, with both leaders maintaining that there was no reason for such violence.

Obama, while condemning the shooting, said “There is absolutely no place for political violence in our democracy.”

On his part, Biden who urged the people to remain united despite their political differences, said “There’s no place for this kind of violence in America. We must unite as one nation to condemn it,” he added.

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