The International Monetary Fund (IMF) released a 114-page study on El Salvador on Friday, with a space dedicated to bitcoin as lawful cash and the government's Chivo digital wallet "as a new payment option."
In September of last year, El Salvador became the first country to recognize bitcoin as an official currency with legal tender status alongside the US dollar. According to the IMF report, the Salvadoran government's Chivo wallet has "amassed a substantial number of clients, 3.8 million, although it is unknown how many are using bitcoin in their transactions or retaining bitcoin balances."
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According to the newspaper, El Salvador's Bitcoin law created "a trust fund, Fidebitcoin, funded with US$150 million to ensure the transition" between bitcoin and dollars. According to the study, the monies were mostly used to bankroll the launch of Chivo.
According to the IMF, the actual costs of implementing Chivo and operationalizing the Bitcoin law outweigh the potential benefits soon.
According to the IMF, short-term budgetary expenses will be 1% of GDP in 2021-2022, whereas near-term profits might be up to 14% of GDP per year.
The paper also discusses the drawbacks of using bitcoin as a form of legal money, stating:
Significant dangers to financial stability, financial and market integrity, and consumer protection are created by using bitcoin as legal cash. If the use of bitcoin grows significantly, the dollarization regime, which has proven to be a successful nominal anchor for the economic system, could be jeopardized.
As per a sale on the NFT market Opensea, Justin Bieber paid 500 ethereum valued $1.29 million at the time of the transaction on a Bored Ape Yacht Club (BAYC) NFT.
Bieber is a renowned pop singer with his hit seven-track EP "My World," Bieber is a renowned pop singer. Bieber became the youngest solo male music artist to enter the Billboard 200 in 47 years with his 2009 album. Bieber appears to be experimenting with digital currencies and non-fungible token assets 13 years later.
"JustinBieberNFTS" is Bieber's Opensea username, and the BAYC he bought was Bored Ape Yacht Club #3001. Bieber's NFT purchase was notable for the grounds that the BAYC's minimum price at the time of purchase was 104 ether, or $270,908.
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Furthermore, on January 29, 2022, the projected value of BAYC #3001 was $208,237, whereas Bieber spent 500 ether. This suggests that the well-known Canadian artist spent far more than the market value of the BAYC.
The artist has roughly 340.43 ethereum worth $879K in his wallet that he leveraged sitting idle at the moment of writing. Bieber's wallet also reveals that he enjoys acquiring NFTs, with statistics revealing that he has 619 NFTs from 49 collections.
