[Bitcoin Now] Pressure Coming from Around the World... Falling to 70 Million Won Range

IMF: "El Salvador's Adoption of Bitcoin as Legal Tender Could Pose Significant Risks"
Indian Government Plans to Introduce Bill Banning Bitcoin and Ethereum Trading

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has fallen to the 70 million KRW range. It is interpreted that the pressure on cryptocurrencies worldwide, including from the International Monetary Fund (IMF) and the Indian government, has had an adverse effect.

According to the domestic cryptocurrency exchange Upbit, as of 3:19 PM on the 24th, Bitcoin recorded 70.54 million KRW, down 1.75% from the previous day. After falling below the 70 million KRW mark the day before and rebounding to 72.2 million KRW, it is showing a sluggish trend again. It also dropped to 70.26 million KRW at 11:45 AM on the same day.

The IMF expressed a negative opinion on El Salvador, a Central and South American country that adopted Bitcoin as legal tender. According to major foreign media on the 22nd (local time), the IMF, in a report released after visiting El Salvador that day, pointed out, “Considering Bitcoin’s volatility, using Bitcoin as legal tender could pose significant risks in terms of consumer protection, fiscal soundness, and stability,” and added, “Contingent fiscal liabilities may arise.” Contingent liabilities refer to potential debts that are not recognized as liabilities at present but are expected to result in resource outflows.

Earlier, the IMF had expressed concerns since El Salvador was considering adopting Bitcoin as legal tender. On June 10, Gerry Rice, IMF spokesperson, said, “Adopting Bitcoin as legal tender is a matter that requires very careful analysis,” adding, “It could cause many macroeconomic, fiscal, and legal issues.”

Nevertheless, El Salvador is focusing more on building Bitcoin-related infrastructure. According to the US economic media Bloomberg on the 20th, Nayib Bukele, President of El Salvador, declared at a Bitcoin conference held in Misata, El Salvador, “We will build a Bitcoin city,” and “Within the city, except for a 10% value-added tax, no property tax or income tax will be imposed.” The El Salvador government has also provided citizens with Bitcoin worth $30 (approximately 35,595 KRW) to promote Bitcoin usage.

[Image source=Reuters Yonhap News]

India has also stepped up pressure on the cryptocurrency market. According to cryptocurrency specialized media Coindesk on the 23rd, the Indian government plans to introduce a bill at the winter parliament session on the 29th to restrict transactions of all cryptocurrencies except for some. If the bill passes, transactions of major cryptocurrencies such as Bitcoin and Ethereum will be banned, but the Central Bank Digital Currency (CBDC) issued by the Indian government can be traded. In June, the Reserve Bank of India announced plans to introduce a CBDC within this year.

This content was produced with the assistance of AI translation services.