IMF Not Happy With El Salvador’s Roadmap to Financial Freedom
The International Monetary Fund is putting up some resistance as more nations across the globe are reportedly becoming interested in Bitcoin (BTC).
Four months since El Salvador’s #BitcoinDay, the IMF is now recommending that the country will revert its decision that made Bitcoin legal tender in the country.
In a report issued on Tuesday following bilateral discussions with El Salvador about its economy, the organization warns for possible financial risks and liabilities with the adoption of BTC in the country.
The IMF stresses that:
“There are large risks associated with the use of bitcoin on financial stability, financial integrity and consumer protection, as well as the associated fiscal contingent liabilities.”
Furthermore, IMF directors are urging El Salvadoran authorities to:
“Narrow the scope of the Bitcoin Law by removing bitcoin’s legal tender status. Some directors also expressed concern over the risks associated with issuing bitcoin-backed bonds.”
El Salvador has been discussing a $1.3 billion loan with the IMF, however since El Salvador adopted Bitcoin as legal tender in September and its president Nayib Bukele moving all-in on the cryptocurrency, progress has slowed down.
El Salvador currently holds over 1500BTC, after it purchased 410 coins during the latest dip.
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Source: igaming
