IMF ASKS EL SALVADOR TO STOP USING BITCOIN AS CURRENCY

The International Monetary Fund (IMF) has issued a notice asking El Salvador to remove its status as a payment method for Bitcoin (BTC).

 

In a statement released at dawn on January 26, International Monetary Fund (IMF) officials urged El Salvador to stop recognizing Bitcoin as currency.

 

The IMF believes that “the use of Bitcoin poses significant risks to financial stability, transparency and consumer protection, as well as associated fiscal burdens.” In addition, some senior IMF figures also expressed concern about El Salvador's plan to issue "Bitcoin bonds" .

 

The IMF's recommendation comes as the organization and El Salvador are negotiating for a loan of up to $1.3 billion.

 

El Salvador was the first country in the world to recognize BTC as currency in September 2021 . The country's president, Nayib Bukele, has since made pro-BTC moves on social media and developed plans to bring Bitcoin into the Latin American nation's economy.

 

However, with the recent correction of the cryptocurrency market, Bukele's Bitcoin "bottom-fishing" investments are said to be losing heavily .