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IMF weighs in on El Salvador’s Bitcoin legal tender Legislation

You are here: Home / News / IMF weighs in on El Salvador’s Bitcoin legal tender law June 11, 2021 by Sahana Kiran El Salvador’s crypto-friendly moves over the last couple of days have put the region on a pedestal. However, the International Monetary Fund, aka IMF, wasn’t happy with this decision at all. El…

You are here: Home / News / IMF weighs in on El Salvador’s Bitcoin legal tender Legislation

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El Salvador’s crypto-friendly moves throughout the last few times have put the region on a pedestal. However, the International Monetary Fund, aka IMF, wasn’t pleased with this decision in any way.

El Salvador’s president Nayib Bukele went in, with regard to the adoption of crypto. The president proceeded to make El Salvador the very first nation to provide Bitcoin a legal tender status. With this law in place, each economic agent in the nation would be bound to accept Bitcoin as payment. This legislation also assists in the effortless transfer of remittances from Salvadorans residing from the country.

IMF views the”macroeconmic” repercussions of BTC getting a legal tender

In a recent media briefing, the spokesman of IMF, Gerry Rice dealt with the nation’s most up-to-date move and implied that there were many issues that had to be discussed. The IMF has scheduled a meeting with president Bukele on Thursday to review the latest Bitcoin law. The country is hoping to score a whopping $1 billion program in the IMF, Reuters proposed.

Rice added,

“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are following developments closely, and we’ll continue our consultations with the authorities.”

Cryptocurrencies have always had a tough time establishing a presence in the world. Even though officials across the globe have been continuously trying to control the current market, cryptocurrencies recorded exorbitant growth concerning value as well as popularity. But this surge didn’t prevent regulators out of reviewing the industry.

Commenting on precisely the same, Preston Pysh, a prominent Podcast server tweeted,

“Similar to how global central banks have incentivized citizens of the world to get in debt up to their eyeballs, the IMF does the same but for nation states. #Bitcoin flips this incentive on its head. Watch El Savador’s actions here…it’s going to be extremely demonstrative.”

Additionally, with this in bay,

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