The International Monetary Fund (IMF) expressed concern about the recent adoption of legalization Bitcoin (BTC) as a legal tender in Savior.
Reuters report on Thursday, IMF officials were concerned that new developments in El Salvador raise serious legal and economic issues that need to be critically analyzed.
“The introduction of Bitcoin as a legal tender raises a number of macroeconomic, economic and legal issues that require very careful analysis,” IMF spokeswoman Gerry Rice said during a planned press conference. “We will closely monitor developments and continue negotiations with the authorities.”
El Salvador made history this week with its legislators admitted President Nayib Bukele’s proposal to accept the BTC as legal tender in the country. The decision was made by the legislature with a landslide of 62 for against 19 n. Bitcoin has now coexisted with the US dollar, the official fiat currency, in this Caribbean country for over 20 years.
El Salvadoran officials expect to meet with an IMF team to discuss a new Bitcoin plan. The country believes cryptocurrency reduce major barriers and obstacles identified in remittances to the country. Discussions with the IMF and the concerns of the funds may be related to the $ 1 billion in funding that the nation is still looking for.
El Salvador is all supporting its support for Bitcoin. In addition to being accepted as a legal method of payment by President Bukele, it is also is considering the opportunity to build a BTC mining ecosystem around a new geothermal well created from one of its volcanoes. This clean energy extraction will increase the country’s efforts for Bitcoin. While the IMF may be concerned about the financial status of the decision, environmentalists are prepared to praise the clean energy mining idea.
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