El Salvador might be forced to depreciate due to a cryptocurrency failure

El Salvador might be forced to depreciate due to a cryptocurrency failure ...

Bitcoin became an official currency alongside the US dollar in El Salvador last year. The move has proved controversial: many individuals believed that BTC''s volatility would cause the country''s economic problems to worsen, and the government''s wallet app has proved far from reliable. El Salvador has also faced criticism from the World Bank and the International Monetary Fund (IMF) for their decision.

The crypto crash this week has caused El Salvador to see almost $1 trillion cut off its market cap. According to Bloomberg, Bitcoin''s 40% gain from January means President Nayib Bukele''s losses on BTC have reached $40 million, and this has raised concerns about whether the government will repay its debt payment in January next year. Many international credit institutions have already reduced El Salvador''s credit rating to CCC, aka "junk."

El Pais notes that the IMF, which might assist El Salvador in its next foreign debt repayment, has urged Bukele to drop Bitcoin as a legal tender, causing the country''s relationship to the organization to be complicated.

pic.twitter.com/A6ay8aAREW #Bitcoin City is fantastic.

Bukele is certainly not concerned about the importance of adopting Bitcoin as a legal offer. On May 9, he purchased 500 more coins for $15.5 million. At the time of writing, their value is down by approximately $500,000. He also reminded people that Bitcoin City is coming along nicely.

Useacoin for the Masthead credit

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