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Bitcoin’s Legalization Could Undermine El Salvador’s Financial Stability: IMF Report

ByLouis Adams

Feb 13, 2023 #Bitcoin
Reading time: < 1 minute

The International Monetary Fund spoke out against the decision of El Salvador to recognize Bitcoin as a means of payment 2 years ago.

The regulator demanded that the Latin American state repeal the BTC law together with the World Bank.

However, El Salvador not only did not abandon the cryptocurrency, but also prepared the regulatory framework for the upcoming placement of Bitcoin bonds.

The IMF published last week a report in which it reminded the authorities of El Salvador of the risks to the financial system that appeared after the recognition of the digital currency as a means of payment.

According to the IMF, BTC is subject to volatility, which is the reason why the country needs to prepare an action plan in case turbulence returns to the crypto sphere.