IMF says bitcoin risks ‘have not materialised’ for El Salvador

The international monetary fund (IMF) once again passed a statement on El Salvador’ Bitcoin legal tender system but smoothly. 

The IMF is a global financial body of the United Nations, and an international financial institution. This financial body is headquartered in Washington, D.C. This fund consists of 190 countries. The main mission of this agency is to “work to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty in the world. 

On 10 Feb 2023, The IMF agency released a statement on El Salvador and stated that El Salvador’s bitcoin adoption in the payment system” has not materialized”. The financial body also noted that the Latin American country is standing in a better position primarily because of its “limited” field of Bitcoin use. 

“Given the legal risks, fiscal fragility, and largely speculative nature of crypto markets, the authorities should reconsider their plans to expand government exposures to bitcoin,” the IMF said.

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IMF says El Salvador's bitcoin risks have not materialized but 'should be addressed' https://t.co/PlGGBiE7xG pic.twitter.com/s94LwMEwjL

— Reuters (@Reuters) February 11, 2023

It is worth noting that El Salvador paid its $800 million debt bond in Jan 2023. El Salvador president Nayib Bukele indirectly criticised all the Bitcoin haters and said that now no one will appreciate the economic growth of the country because of Bitcoin

In the past year, almost every legacy international news outlet said that because of our “#Bitcoin bet”, El Salvador was going to default on its debt by January 2023 (since we had an 800 million dollar bond maturing today).

Literally, hundreds of articles https://t.co/rEiK7K13U4

— Nayib Bukele (@nayibbukele) January 24, 2023

Bitcoin & Tourism

The decision of Bitcoin adoption as a legal tender was proposed & approved by Nayib Bukele officially on 7 September 2021. 

Because of Bitcoin’s use as a legal tender in El Salvador, many people from the crypto sector & other parts of the world showed Inclination toward El Salvador’s Bitcoin beach. In short, Bitcoin adoption played an important role in El Salvador to increase revenue from its tourist attractions. 

Read also: SEC commissioner says staking service crackdown on Kraken was arbitrary

IMF says bitcoin risks ‘have not materialised’ for El Salvador

 

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