So far Bitcoin is still traded ‘sideway’ and tends to be weak, although competition between cryptocurrencies and fiat currencies continues as usual. In the midst of this conflict, El Salvador took a different step by announcing that Bitcoin would be a legal currency. The next step is to establish El Salvador's official currency system in line with the US dollar.
Before the matter was addressed, the International Financial Institutions (IMF) had responded by saying the use of Bitcoin as a legitimate tender could result in risks and obstacles. Hence the IMF urges it to be handled with caution.
At the same time, the Bank Basel Committee also set a 1250% risk weighting for Bitcoin. On the one hand, El Salvador President Nayib Bukele hopes Bitcoin can help the country's economic development. On the other hand, warnings continue to be issued among major international organizations, institutions and central banks.
The IMF team is scheduled to meet with El Salvador President Nayib Bukele today with a pandemic aid package for the country under consideration.
According to White House spokesman Gerry Rice, "The adoption of bitcoin as a legal tender raises a number of macroeconomic, financial and legal problems that require very careful analysis."
So far, the crypto market is still rained down by various less positive sentiments and some of them are ‘FUD’. BTC prices are still pegged at $ 36,000 and $ 37,000. The market chooses to be careful in trading.
