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IMF sees legal issues with El Salvador’s bitcoin move

  • The IMF said on Thursday it has a number of economic and legal concerns regarding the move from El Salvador to make bitcoin a legal tender
  • El Salvador is in discussions with the IMF, seeking a near $1 billion program
  • Lawmakers in El Salvador on Tuesday approved a bill that will eventually allow Bitcoin to be used for many aspects of daily life

The International Monetary Fund said on Thursday it has a number of economic and legal concerns regarding the move from El Salvador to make bitcoin a legal tender.

The fund will discuss the bitcoin law with president Bukele

“Adoption of Bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis, so we are following developments closely and will continue our consultation with authorities,” Rice said, speaking in Washington. “Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them.”

Rice said the Fund will later on Thursday meet with Bukele to discuss the bitcoin law. El Salvador is in discussions with the IMF, seeking a near $1 billion program, and it is not yet clear how the Bitcoin law will affect these discussions.  “The IMF staff team will communicate at the end of this mission, which is taking place virtually,” Rice said.

Lawmakers on Tuesday approved the bill to make Bitcoin a legal tender

Lawmakers on Tuesday approved a bill that will eventually allow Bitcoin to be used for many aspects of daily life, from property purchases to tax contributions. The bill made the country the first to approve bitcoin as legal tender for everyday use.

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