IMF Wants El Salvador to Remove Bitcoin as Legal Tender
Posted on 01/26/2022
The International Monetary Fund (IMF) is an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. In a report, the IMF urged El Salvador to remove Bitcoin (BTC) as legal tender. The report was published after bilateral talks with El Salvador.
In September 2021, under Salvadoran President Nayib Bukele, became the first country to adopt BTC as legal tender, alongside the U.S. dollar.
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.”
Bukele has added hundreds of bitcoin to the country’s balance sheet in recent months.
Like most countries, El Salvador has been trying since early 2021 to secure a US$ 1.3 billion loan from the IMF.