For concerns relating to the financial risks associated with bitcoin, the IMF’s executive board advised El Salvador to suspend its use of the cryptocurrency as legal cash.
The paper emphasised the hazards associated with Bitcoin use, particularly in terms of consumer protection and financial stability and integrity. After that, the report asked Salvadoran authorities to regulate the Bitcoin law by removing Bitcoin’s legal money status. Meanwhile, an IMF staff member expressed opposition to the introduction of Bitcoin as legal tender in El Salvador in November 2021. In fact, the staff recommended that the Central American country concentrate on improving its regulatory structure and overseeing its newly developed crypto payment environment.
El Salvador has received a lot of attention, especially when it recognised Bitcoin as legal tender in September 2021.
Meanwhile, El Salvador’s President, Nayib Bukele, has become a crypto enthusiast and one of the most visible and well-known voices in the space.
