Should El Salvador Ditch Bitcoin as Legal Tender? – IMF Thinks So

The International Monetary Fund (IMF) monitors the global economy and provides loans and assistance to its 190 member countries. They recently urged El Salvador to abandon Bitcoin as a legal tender. The IMF collects economic data and reports it to the board during regular meetings with its member countries. The board then consults with the government about issues and potential solutions. IMF Meeting With El Salvador The IMF believes El Salvador has a Bitcoin problem. After the meeting, the international organization said that the Central American country’s economy is contracting, increasing its public debt. According to the report, the fact that Bitcoin has been the national currency since September 2021 is detrimental to the country’s economic recovery. This is because: “Making a cryptocurrency legal tender poses significant risks to the market and financial integrity, financial stability, and user protection. It may also result in uncertain liabilities.” The IMF has been against this since June 2021, when El Salvador’s President Nayib Bukele said at the Bitcoin Conference in Miami that he would pass legislation requiring people and businesses to accept Bitcoin as payment unless they lacked adequate internet access. The US dollar has been the country’s sole currency since 2001. According to an International Monetary Fund spokesperson, “Effective regulatory measures are important when dealing with crypto assets.” This implies ...