IMF warns of legal and economic impacts of El Salvador's adoption of Bitcoin

English Jun 10, 2021

It's no surprise that global institutions, which neither existed nor were needed during the gold standard period, often adopt a worried tone against Bitcoin.

This Thursday it was the turn of the International Monetary Fund to warn of a series of economic and legal concerns regarding El Salvador's move to make bitcoin a parallel legal tender.

Shortly after the president's announcement, an IMF spokesman said the Fund would meet as soon as possible with the president of El Salvador to discuss the bitcoin law.

El Salvador is currently in talks with the IMF in pursuit of a nearly $1 billion program.

"The adoption of bitcoin as the legal currency raises a number of macroeconomic, financial and legal issues that require very careful consideration."

El Salvador became the first country in the world to adopt bitcoin as its legal currency, with President Nayib Bukele touting its use for its potential to help Salvadorans living abroad send remittances to the country.

The decision is already influencing neighboring countries to follow the same path, with politicians from Paraguay and Panama defending the idea of ​​adopting the cryptocurrency to reduce the impacts of inflation that are about to hit the dollar in the coming years.


Morel Hernandes

Writer passionate about politics, economics, blockchain and crypto-currencies.