Daily Trade News

IMF urges El Salvador to remove Bitcoin’s status as legal tender By



© Reuters

Members of the executive board at the International Monetary Fund are urging lawmakers in El Salvador to no longer recognize as legal tender.

The IMF reported on Tuesday that though digital payments had the potential to increase financial inclusion in the Central American nation, the use of Bitcoin (BTC) as legal tender carried “large risks” related to financial stability, financial integrity and consumer protection. The executive board directors urged El Salvador authorities to “narrow the scope of the Bitcoin law by removing Bitcoin’s legal tender status,” also expressing concern about the potential risks of issuing Bitcoin-backed bonds.