The International Monetary Fund (IMF) has warned of “a number of macroeconomic, financial and legal issues” surrounding making bitcoin legal tender around El Salvador. “Cryptocurrency assets can pose significant risks and effective regulatory measures to combat them are very important,” an IMF spokesperson cautioned.
IMF looks into the issues of bitcoin being legal tender in El Salvador
The International Monetary Fund (IMF) on Thursday raised several economic and legal concerns regarding El Salvador’s making bitcoin legal tender at par with the US dollar. with recent Approval El Salvador has become the first country in the world to adopt bitcoin as legal tender, according to the “Bitcoin Law” proposed by President Nayib Bukele.
IMF spokesman Gerry Rice said during a scheduled press briefing in Washington:
The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis, so we are following developments closely and will continue our consultation with the authorities. Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them.
The spokesperson said the IMF will be meeting with President Bukele on Thursday to discuss the recently passed bitcoin legislation. El Salvador is in talks with the IMF for a loan of about $1 billion.
written below Adoption Bill to make bitcoin legal tender, El Salvador announced That it would be mining bitcoins using energy from volcanoes. “I just asked the president of La Jio (our state-owned geothermal electric company) to plan to provide facilities for bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcano. It’s going to develop rapidly,” President Bukele said.
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