IMF Expresses Considerations El Salvador is making Bitcoin authorized tender
The International Monetary Fund (IMF) has warned of “a number of macroeconomic, financial and legal problems” related to El Salvador’s adoption of Bitcoin as legal tender. “Crypto assets can harbor significant risks and effective regulatory measures are very important in dealing with them,” warned an IMF spokesman.
IMF sees problems with Bitcoin as legal tender in El Salvador
The International Monetary Fund (IMF) on Thursday raised a number of economic and legal concerns that El Salvador is making Bitcoin legal tender on par with the US dollar. With the recent passage of the “Bitcoin Law” proposed by President Nayib Bukele, El Salvador became the first country in the world to introduce Bitcoin as legal tender.
Gerry Rice, an IMF spokesman, said during a scheduled news conference in Washington:
The introduction of Bitcoin as legal tender raises a number of macroeconomic, financial, and legal issues that require very careful analysis. We are therefore closely following developments and will continue our consultations with the authorities. Crypto assets can harbor significant risks and effective regulatory measures are very important when dealing with them.
The spokesman added that the IMF will meet with President Bukele later Thursday to discuss the recently passed Bitcoin law. El Salvador has held talks with the IMF about a loan of nearly $ 1 billion.
After the passing of the bill to establish Bitcoin as legal tender, El Salvador announced that it would mine Bitcoin using the energy from volcanoes. “I have just directed the President of La Geo (our state-owned geothermal electricity company) to come up with a plan to provide bitcoin mining facilities with very cheap, 100% clean, 100% renewable energy from our volcanoes. That will develop quickly, ”said President Bukele.
What do you think of the IMF’s concerns that Bitcoin is legal tender in El Salvador? Let us know in the comment section below.
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