IMF frowns at El Salvador’s decision to make Bitcoin legal tender
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IMF frowns at El Salvador’s decision to make Bitcoin legal tender

Saudu Clement
Saudu Clement

Following El Salvador’s decision to adopt Bitcoin as legal tender, the International Monetary Fund (IMF) has expressed its “economic and legal” worries over the country’s new pro-BTC stance.

IMF spokesman Gerry Rice said that the decision raises several concerns, Reuters reported. He goes further to note that cryptocurrencies can pose regulatory risks.

Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are following developments closely, and we’ll continue our consultations with the authorities.

A Thursday press briefing from the IMF also said that the group would be meeting with El Salvador’s national government over the decision yesterday. As of press time, no statement has been issued regarding the outcome of the meeting.

Bitcoin to the rescue

As explained by El Salvador’s president Nayib Bukele, the new Bitcoin Law aims to attract capital into the country, generate more jobs, and “provide financial inclusion to thousands outside the formal economy” in the short

term. Bukele is confident that the move could help secure the economic stability of his country. He noted this after calling out central banks to increasingly taking actions that could jeopardize the country.