Bitcoin Daily: IMF wants El Salvador to overturn rules
Bitcoin-hoarding software company MicroStrategy plans to continue investing in crypto, even though bitcoin’s value has taken a few hits in recent days, according to chief financial officer Phong Le.
“Our strategy with bitcoin has been buy and hold, so to the extent that we have excess cash flow or find other ways to raise funds, we continue to put it into bitcoin,” said Le in an interview with The Wall Street Journal on Tuesday (January 25).
Additionally, CoinDesk reported that CEO Michael Saylor said acquiring bitcoins is a primary focus for the company. At the end of 2021, MicroStrategy held 124,391 bitcoins.
The crypto market has suffered lately, after experiencing a slowdown related to falling stock prices. The market has seen a $1.3 trillion drop in value over the past few months, and bitcoin fell to $33,000 at one point, well below its November high.
Meanwhile, administrators of the International Monetary Fund (IMF) are warning that there are big risks associated with using cryptocurrency.
Bloomberg reported on Tuesday that the IMF said El Salvador, which recently made headlines for making bitcoin legal tender, should roll back the move.
According to the report, this could be a major obstacle to the country’s efforts to secure a loan. Last year, El Salvador was seeking a $1.3 billion loan from the IMF, though talks stalled due to the lender’s crypto concerns.
In the press release, the executive directors of the IMF said bitcoin poses risks to financial stability, financial integrity, and consumer protection, as well as potential tax liabilities. Moreover, some administrators have also had problems with the risks associated with the popular crypto.