IMF calls on El Salvador to abandon Bitcoin

IMF has called on El Salvador to stop using Bitcoin as an official form of payment.

The International Monetary Fund noted that despite the rapid recovery of the economy after the recession during the pandemic, El Salvador is threatened by the negative consequences of the lack of regulation of cryptocurrencies.

Members of the Executive Board of the International Monetary Fund have endorsed the measures taken by the country’s authorities to enhance financial inclusion.

“However, they noted the need for strong regulation and oversight of the new Chivo and Bitcoin ecosystem. They emphasized that there is a significant amount of financial stability, financial integrity, and consumer protection risks associated with the use of Bitcoin, as well as contingent financial liabilities associated with it.”
They called on the authorities to narrow the scope of the bitcoin law by removing it from the official bidding status.”

 

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