IMF Urges El Salvador to Discontinue Bitcoin’s Legal Tender Status

2 years ago

The enforcement committee of the International Monetary Fund recommended that El Salvador discontinue the usage of bitcoin arsenic ineligible tender successful in the state owed to the fiscal risks and liabilities created.

  • The proposal came successful a report issued connected Tuesday pursuing bilateral discussions with El Salvador astir its economy.

  • IMF directors “stressed that determination are ample risks associated with the usage of Bitcoin connected fiscal stability, fiscal integrity, and user protection, arsenic good arsenic the associated fiscal contingent liabilities,” according to the report.

  • Directors besides “urged the authorities to constrictive the scope of the Bitcoin instrumentality by removing Bitcoin’s ineligible tender status. Some Directors besides expressed interest implicit the risks associated with issuing Bitcoin-backed bonds.”

  • El Salvador archetypal adopted bitcoin arsenic ineligible tender successful Sept. 2021 and its president Nayib Bukele has go a vocal proponent of the cryptocurrency.

This is simply a processing communicative and volition beryllium updated.


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