The price of Bitcoin has fallen more than 50% from its peak in November, and the cryptocurrency market as a whole has lost more than $1 trillion in value over that time
The President of El Salvador, Nayib Bukele, gestures during his speech at the closing ceremony of the Latin Bitcoin conference (LaBitConf) at Mizata Beach, El Salvador. - The IMF in January, 2022 called on El Salvador to change course and stop using Bitcoin as legal tender, citing "large risks" posed by the cryptocurrency. (Photo by MARVIN RECINOS / AFP)
The International Monetary Fund urged El Salvador on Tuesday to end its recognition of Bitcoin as legal tender. Adopting a cryptocurrency in this way “entails large risks for financial and market integrity, financial stability and consumer protection,” the fund’s executive board wrote.
The price of Bitcoin has fallen more than 50% from its peak in November, and the cryptocurrency market as a whole has lost more than $1 trillion in value over that time. For prominent institutions that have bought into Bitcoin, from El Salvador’s government to some multinational corporations, the downturn could prove costly — and may create regulatory headaches.
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