Nayib Bukele, the President of El Salvador, has argued on social media that bitcoin ($BTC) will see a “gigantic price increase” in the future as more wealthy individuals move in to acquire the flagship cryptocurrency and its limited supply forces them to bid higher for it.
In a tweet Bukele shared with his over 3.5 million followers on the microblogging platform, Bukele noted that there are more than 50 million millionaires in the world, while the flagship cryptocurrency’s supply is limited to 21 million coins.
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Bukele added that if every millionaire in the world one day decides they should own at least one coin there won’t even be enough for half of them, which to him means a “gigantic price increase is just a matter of time.”
The President of El Salvador’s tweet comes shortly after the executive board of the International Monetary Fund (IMF) has urged El Salvador to drop the use of Bitcoin as legal tender in the country over the financial risks and liabilities created.
In a newly issued report, IMF directors “stressed that there are large risks associated with the use of bitcoin on financial stability, financial integrity and consumer protection, as well as the associated fiscal contingent liabilities.”
They also urged the country’s authorities to “narrow the scope of the Bitcoin Law by removing bitcoin’s legal tender status.” Some directors also expressed concern over the issuance of bitcoin-backed bonds.
El Salvador is negotiating with the IMF a $1.3 billion loan. The country notably adopted BTC as legal tender in September, with Bukele since then becoming a vocal cryptocurrency proponent. El Salvador itself has over time amassed a 1,500 BTC stash after buying bitcoin price dips.
The country’s move to adopt the cryptocurrency as legal tender has been heavily criticized by some. The World Bank has, for example, said it cannot help the country with the implementation of the cryptocurrency, while the IMF expressed concerns numerous times before urging it to drop BTC.
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