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El Salvador is Urged by the International Monetary Fund (IMF) to Stop Using Bitcoin as Legal Cash.

Nicaragua, Tuesday, 25 January 2022

The International Monetary Fund (IMF) has "urged" El Salvador's government to stop using Bitcoin as legal cash, citing "significant dangers" to the country's economy.

"There are considerable risks connected with the usage of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the accompanying fiscal contingent liabilities," the fund's executive board said during meetings with El Salvador.

They encouraged the government to limit the scope of the Bitcoin law by revoking Bitcoin's position as a legal money. Some Directors were also concerned about the hazards of issuing Bitcoin-backed bonds," the statement continued.

It seems unlikely, however, that the advice will be followed. El Salvador adopted the cryptocurrency as an official form of payment in September and President Nayib Bukele, a major crypto supporter, announced Friday that the country bought an additional 410 Bitcoins, which was worth about $15 million at the time.

Bitcoin currently sits above $37,000 following a tumultuous week for cryptocurrencies.

It fell to its lowest point since July on Monday, dipping below $33,000 before recovering.

(Written and edited by: The Decision Maker)


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