The International Monetary Fund (IMF) has warned of “a number of macroeconomic, financial and legal issues” surrounding El Salvador making bitcoin legal tender. “Crypto assets can present significant risks and effective regulatory measures are very important to manage them,” warned an IMF spokesperson.
IMF sees problems with Bitcoin being legal tender in El Salvador
The International Monetary Fund (IMF) on Thursday raised a number of economic and legal concerns over El Salvador making bitcoin legal tender, on a par with the US dollar. With the recent approval of the “Bitcoin Law” proposed by President Nayib Bukele, El Salvador became the first country in the world to adopt bitcoin as legal tender.
Gerry Rice, an IMF spokesperson, said at a scheduled Washington press briefing:
The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are therefore closely monitoring developments and will continue our consultation with the authorities. Crypto assets can present significant risks and effective regulatory measures are very important to manage them.
The spokesperson added that the IMF will meet with President Bukele later Thursday to discuss the recently passed bitcoin law. El Salvador is in talks with the IMF to secure a loan of nearly $ 1 billion.
Following the passage of the bill to make bitcoin legal tender, El Salvador announced that it would mine bitcoin using energy from volcanoes. “I just asked the president of La Geo (our state-owned geothermal power company) to put in place a plan to offer facilities for bitcoin mining with very cheap, 100% clean, 100% energy. renewable, without emissions from our volcanoes. This will change quickly, ”President Bukele said.
What do you think of the IMF’s concerns about bitcoin being legal tender in El Salvador? Let us know in the comments section below.
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