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IMF concerned over El Salvador’s decision to declare bitcoin legal tender

After a historic decision by El Salvador to legalize Bitcoin as a payment medium in their country, the International Monetary Fund (IMF) has stated some economic and legal concerns regarding the move.

El Salvador has become the first country in the world to adopt Bitcoin as a legal tender, with president Nayib Bukele touting its use as a medium helping Salvadorans living abroad to send remittances back home.

IMF spokesperson Gerry Rice, said:

“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis.”

He also added that they’ll be “following developments closely and will continue consultations with the authorities.”

Rice also said that the fund has plans to meet with Nayib Bukele later that day regarding some discussion on the newly passed bitcoin law. This is crucial since El Salvador has been in discussions with IMF seeking a near $1 billion program.

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