El Salvador passed a bill making Bitcoin legal tender this week, putting it on equal footing with the country’s official national currency, the U.S dollar.
While this was celebrated as a victory for Bitcoin, the International Monetary Fund (IMF) has since voiced its concerns with the move. During a press conference on the matter, IMF spokesperson Gerry Rice said:
“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis.
We are following developments closely, and we’ll continue our consultations with the authorities.”
IMF Does Not Approve Of Sovereign Adoption of Bitcoin In El Salvador
El Salvador moved quickly from announcing its intent to adopt Bitcoin through to congressional discussions and then passing the proposal into law.
President Nayib Bukele spoke about the economic benefits of Bitcoin, particularly in helping Salvadorans living abroad to send remittances back home.
However, the IMF and foreign investors do not look favorably