International Monetary Fund urges El Salvador to drop bitcoin

The International Monetary Fund wants El Salvador to drop bitcoin as legal tender

The IMF has warned the nation to strictly regulate the electronic wallet, which the government has pushed across the country.

The global lender’s board says it entails large risks for financial and market integrity, financial stability and consumer protection.

El Salvador’s law called for all businesses who have the available technology to accept bitcoin as payment.

“The adoption of a cryptocurrency as legal tender, however, entails large risks for financial and market integrity, financial stability and consumer protection.”

President Nayib Bukele led the push to adopt bitcoin as legal tender alongside last year. It made El Salvador the first country to do so.

However, the President has chosen not to respond to the IMF’s suggestions.

El Salvador’s Treasury Minister Alejandro Zelaya said boosting financial inclusion was important and that an e-wallet could help.

https://twitter.com/AlejandroZelay9/status/1486079860732796936

On Twitter, Mr Zealaya said “the future waits for no one.”

The IMF said the nation was projected to grow 10 per cent last year after contracting 7.9 per cent from the year before.