The International Monetary Fund wants El Salvador to ditch bitcoin as legal tender and strictly regulate the e-wallets that the government is pushing for nationwide adoption.
The International Monetary Fund said in a statement on Tuesday that the global lender’s board “urges authorities to narrow the scope of bitcoin laws by removing bitcoin from legal tender status.” “However, the adoption of cryptocurrencies as legal tender presents significant risks to financial and market integrity, financial stability, and consumer protection” — the IMF statement said.
President Nayib Bukele led the push to make bitcoin legal tender alongside the US dollar. El Salvador’s legislative assembly became the country’s first to do so.
Edward Snowden has responded to the IMF’s request that El Salvador reverse its Bitcoin adoption.