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Amid one of the worst crashes in bitcoin history, El Salvador’s president, Nayib Bukele, doubled down on its bet, adding 500 tokens to the country’s national reserves.
Cryptocurrency investors fled from the risky asset after one of the most trusted coins, Terra, took a nosedive. A prolonged dip could destabilize emerging markets like El Salvador.
Central African Republic and El Salvador have made Bitcoin legal tender and Panama has approved a bill to regulate crypto assets. Experts warn that nations that adopt crypto currencies risk instability.
The International Monetary Fund (IMF) urged El Salvador to abandon Bitcoin, saying the cryptocurrency could pose risks to national financial stability, consumer protection and the ability to receive loans.
Salvadoran President Nayib Bukele said “dark forces” are behind a rise in crime in the country. Critics may view the military operation as the latest sign of increasing authoritarianism under Bukele’s leadership.