Regulation News

IMF express concern over El Salvador Bitcoin status

TL;DR Breakdown

  • IMF concerned about El Salvador making Bitcoin a legal tender
  • El Salvador to make plans on how country will mine BTC with volcanic energy
  • Bitcoin community to raise $1billion for El Salvador

The International Monetary Fund (IMF) has expressed dissatisfaction on El Salvador’s recent move to make the foremost cryptocurrency Bitcoin a legal tender in the country. The international financial organization said it has certain economic and legal concerns regarding El Salvador move on Thursday.

“Adoption of bitcoin as legal tender raises several macroeconomic, financial, and legal issues that require very careful analysis.” “We are following developments closely, and we’ll continue our consultations with the authorities,” Gerry Rice, an IMF spokesman, said.

The IMF spokesperson also said they would meet with El Salvador President, Nayib Bukele to discuss the Bitcoin law. The Central American country barely 48 hours ago passed a bill to make Bitcoin a parallel legal tender.

It became the first country globally to do so. The government also invested $150 million in Bitcoin and said they would keep accepting BTC and promote its use.

Bukele, after the Bitcoin law was passed, was asked about his thought on Bitcoin mining in the country owing to its hydro and volcanic energy. The president said he has not given any thought to mining but assured that he will look into the possibilities of Bitcoin mining using volcanic energy.

Earlier today, he announced that he has talked with the president of the geothermal electric company to make way for Bitcoin mining using volcanic energy.

El Salvador may be at IMF’s mercy

Currently, El Salvador is in discussions with the IMF seeking a near $1 billion program.

Emotions are building up in the crypto community that El Salvador’s priority would be the $1 billion program, and the community tagged it as destructive for the country that just declared for the crypto community.

Max Keiser, a leading Bitcoin voice said in a Twitter post that the IMF should be removed from the El Salvador’s equation and Bitcoiners should arrange a $1 billion lending facility stop-gap for the country.

This post was last modified on June 10, 2021 9:14 pm

Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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