El Salvador urged to Remove Bitcoin’s Legal Tender Status by IMF

Synopsis

“The global financial institution on Tuesday in a bilateral discussion with El Salvador urged to remove its Bitcoin’s Legal Tender Status as the IMF believes that it poses a risk to the country’s financial stability, integrity and consumer protection.”

The global financial institution on Tuesday in a bilateral discussion with El Salvador urged to remove Bitcoin’s Legal Tender Status as the IMF believes that it poses a risk to the country’s financial stability, integrity and consumer protection. The recommendation came after the bilateral discussion held on Tuesday between the institution and El Salvador as El Salvador is negotiating with the IMF for a $1.3 Billion loan.

IMF directors “stressed 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,” according to the report. The report also highlighted the recommendation to narrow the scope of Bitcoin Law by removing Bitcoin’s legal tender status and also IMF showed concerns regarding issuing a Bitcoin-backed Bond in the report.

El Salvador has adopted Bitcoin as a Legal Tender along with US Dollar in its country and is buying every Bitcoin market dip. The country recently bought 410 BTC to make its BTC holding of over 1500 BTC. The country is also issuing a Bitcoin-backed Bond and also will be creating a Bitcoin Mining city in its country that would be powered by the green energy from a volcano.

Disclaimer: The article should not be considered as any financial advice. It is advisable to conduct thorough research before investing.

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