IMF asks El Salvador not to recognize bitcoin as legal currency
The International Monetary Fund, through its executive board, asked legislators not to recognize the digital asset as an official payment method
Members of the executive board of the International Monetary Fund (IMF), asked the legislators of El Salvador not to recognize bitcoin as the legal currency of the country.
Despite the fact that digital payments have a high potential for financial inclusion in the Central American nation, the agency thinks that having bitcoin as legal tender can bring “great risks” linked to financial stability.
Ahead of the implementation of El Salvador’s Bitcoin Law in September 2021, IMF officials warned that some of the consequences of a country adopting btc as its national currency “could be dire,” including the risk that prices to become highly unstable and for assets to be used against anti-money laundering and anti-terrorist financing measures.
Since the law came into effect, President Nayib Bukele has announced the acquisition of some 1,801 bitcoin worth approximately $67 million.
K. Tovar
Source: Cointelegraph
