Bitcoin Daily: MicroStrategy to Keep Investing in Bitcoin; IMF Wants El Salvador to Undo Bitcoin Legal Tender Rules

El Salvador, bitcoin, IMF

Bitcoin-accumulating software company MicroStrategy plans to keep investing in the crypto, even as bitcoin’s value has taken some hits in the last few days, according to chief financial officer Phong Le.

“Our strategy with bitcoin has been to buy and hold, so to the extent we have excess cash flows or we find other ways to raise money, we continue to put it into bitcoin,” Le said in an interview with The Wall Street Journal on Tuesday (Jan. 25).

Additionally, CoinDesk reported that CEO Michael Saylor said bitcoin acquisition is a chief goal for the company. At the end of 2021, MicroStrategy held 124,391 bitcoin.

The crypto market has been suffering as of late, having seen a downturn in connection with falling stock prices. The market has seen a $1.3 trillion cut in value in the past few months, and bitcoin was down to $33,000 at one point — far less than its November high.

Meanwhile, International Monetary Fund (IMF) directors are warning that there are big risks associated with using cryptocurrency.

Bloomberg reported Tuesday that the IMF has said El Salvador, which has made headlines recently for making bitcoin a legal tender, should cut back on that move.

According to the report, this could be a big obstacle to the nation’s efforts to get a loan. Last year, El Salvador was seeking a $1.3 billion loan from IMF, although talks have stalled because of the lender’s concerns about the crypto.

In the press release, the IMF executive directors said that bitcoin poses risks to financial stability, financial integrity and consumer protection, along with fiscal contingent liabilities. Additionally, some directors also had issues with the risks from the popular crypto.