IMF urges El Salvador to remove Bitcoin as legal lender

Washington, January 26, ANI The International Monetary Fund urged El Salvador to removeBitcoin as a legal lender citing concerns over financial and market integrity risks.

The International Monetary Fund said in a press release that there are large risks associated with the use ofBitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities. They asked the authorities to narrow the scope of the Bitcoin law by removing the legal tender status. The COVID 19 Pandemic interrupted ten years of growth, but El Salvador is rebounding quickly, according to the International Monetary Fund.

The International Monetary Fund said that robust external demand, resilient remittances and a sound management of the pandemic are supporting a strong recovery, with the help of a disbursement under the Rapid Financing Instrument approved in April 2020.

Public debt vulnerabilities emerged and persistent fiscal deficits are leading to large and increasing financing needs, according to the International Monetary Fund.