The International Monetary Fund (IMF) expressed concern about the recent adoption of legalization Bitcoin (BTC) as legal tender in El Salvador.
According to a Reuters report on Thursday, IMF officials feared the new developments in El Salvador will create serious legal and economic problems that need to be critically analyzed.
“The introduction of Bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis,” said Gerry Rice, an IMF spokesman, during a scheduled press conference. “We are closely monitoring developments and will continue our consultations with the authorities.”
El Salvador made history this week when lawmakers approved President Nayib Bukele’s proposal to make BTC legal tender in the country. The decision was made in the legislature with a landslide-like 62 in favor of 19 no. Bitcoin is now parallel to the US dollar, the official fiat money in this Caribbean nation for 20 years.
Officials from El Salvador will meet with the IMF team to discuss the new plan for Bitcoin. The country believes that Cryptocurrency will remove the main barriers and obstacles to the flow of remittances into the country. The IMF talks and the Funds concerns may be related to the $ 1 billion financing the nation is seeking from the former.
El Salvador is doing everything it can to support its support for Bitcoin. In addition to considering acceptance as a legal form of payment, President Bukele is considering the option of building a BTC mining ecosystem around a new geothermal well from one of its volcanoes. This clean energy depletion will fuel the country’s quest for Bitcoin. While the IMF may have concerns about the economic stance of the decision, environmentalists are ready to praise the idea of clean energy mining.
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