IMF Not Happy About El Salvador Bitcoin Move

Adoption of bitcoin (BTC) as legal tender raises “a variety of macroeconomic, monetary and legal problems that need really mindful analysis,” Reuters reported, pointing out a spokesperson for the International Monetary Fund (IMF).

The fund is following “advancements carefully” and will continue “assessments with the authorities.”

As reported, Nayib Bukele, the President of El Salvador, will go over the Bitcoin law with the IMF today, as the nation remains in talks with the Fund over a USD 1bn program.

At 15:01 UTC, BTC trades at USD 37,171 and is down by 2.5% in an hour, cutting its day-to-day gains to practically 6%.

On the other hand, in 2018, the little and remote Pacific island nation, the Republic of the Marshall Islands (RMI) was likewise cautioned by the IMF over their coin project.

“The prospective take advantage of income gains appear significantly smaller sized than the possible expenses occurring from financial, reputational, AML/CFT [Anti-Money Laundering and Countering Funding of Terrorism], and governance threats,” the Fund stated at that time.

The nation overlooked the caution and, in 2020, partnered with Algorand to develop a blockchain for its very first nationwide digital currency, the Marshallese sovereign (SOV). Nevertheless, there were no updates on the job this year.

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