The IMF once again has opposed the legalization of BTC in El Salvador

According to the fund, the use of bitcoin as a legal tender carries risks for users

23.11.2021 - 12:15

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2 min

What’s new? The International Monetary Fund (IMF) has again stated that bitcoin should not be used as legal tender in El Salvador. The representatives of the organization reported this after their visit to the country as part of consultation under Paragraph IV of the IMF's Articles of Agreement.

The IMF Review

What do the IMF representatives say? The fund believes that given the high volatility in the value of BTC, its use as legal tender carries risks for users as well as the financial integrity and stability in El Salvador.

The IMF staff visiting the country recommended that the state authorities “reduce the scope of the BTC law and strengthen the regulation of cryptocurrency.” They also added that the government should explore measures to limit fiscal contingent liabilities.

What is the reaction of the authorities of El Salvador? Commenting on the IMF review, the country's president Nayib Bukele noted that he disagreed with the fund on criticism of the decision to legalize the first cryptocurrency.

El Fondo Monetario Internacional (@IMFNews) acaba de publicar su evaluación técnica de El Salvador, del año 2021.Y aunque obviamente no estamos de acuerdo en algunas cosas, como la adopción del #Bitcoin, es interesante el análisis que hacen de nuestro país 🇸🇻Sigue... pic.twitter.com/Z8qSv7PntC— Nayib Bukele 🇸🇻 (@nayibbukele) November 23, 2021