IMF warns against adoption of Bitcoin by El Salvador

By Elise Hansen (Nov 23, 2021, 4:26 p.m. EST) – El Salvador’s recognition of Bitcoin as legal tender creates risks to consumer protection as well as the country’s financial stability, and it should consider taking swift action to restrict its law, the International Monetary Fund warned in a statement.

In a Monday assessment of the country’s financial situation, IMF staff said they welcomed efforts to boost financial inclusion, but that Bitcoin’s rapid price swings make it a risky bet.

El Salvador in September became the first country in the world to adopt Bitcoin as legal tender, although the US dollar remains the country’s official currency. President Nayib Bukele defended the law and …

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