IMF sees risks in Salvadoran bitcoin payments legalisation

El Salvador’s decision to recognise the first cryptocurrency as an official means of payment in the country could entail a number of risks and regulatory issues. At a press conference, заявил IMF Gerry Rice.

«The adoption of Bitcoin as legal tender raises a number of macroeconomic, financial and legal questions that require careful analysis, so we are closely monitoring the developments and continuing our consultations with the authorities [El Salvador],» — Rice said.

According to him, crypto assets may pose significant risks, and thus an effective regulatory policy plays a crucial role in dealing with them. The official noted that IMF “works closely” with other organisations studying digital currencies.

Rice added that on 10 June IMF staff conducted a virtual meeting with Salvadoran President Nayib Bukele. They discussed a potential lending programme and “the policy to strengthen economic governance.”

On 9 June 2021, El Salvador’s Legislative Assembly passed a law recognising the first cryptocurrency as an official means of payment in the country on a par with the US dollar.

Bukele instructed the state-owned LaGeo to draw up a plan for the creation of enterprises for Bitcoin mining. According to the president, the mining hub will be designed around a new 95 MW geothermal well.

Soon, that well is going to look like this…

And half a mile from it, the #bitcoin mining facility.

Designing that as we tweet. pic.twitter.com/KXtOZkocrq

— Nayib Bukele 🇸🇻 (@nayibbukele) June 11, 2021

Earlier, some experts warned that Salvador’s adoption of Bitcoin could jeopardize the IMF agreement.

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