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IMF Warns that El Salvador's Plan to Adopt Bitcoin Has Risks

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Published on:
June 11, 2021

Radical details about El Salvador’s plans to make Bitcoin a part of everyday life have been coming in thick and fast.

IMF Warns that El Salvador's Plan to Adopt Bitcoin Has Risks

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The International Monetary Fund has warned that there are a number of risks and regulatory issues surrounding El Salvador’s plans to adopt Bitcoin as legal tender.

 

IMF spokesman Gerry Rice said the organization is “following developments closely and will continue our consultation with authorities.”

 

He went on to add: “Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them.”

 

Radical details about El Salvador’s plans to make Bitcoin a part of everyday life have been coming in thick and fast this week.

 

President Nayib Bukele recent declared that he has asked the head of the state-owned geothermal electric company “to put up a plan to offer facilities for Bitcoin mining with very cheap, 100% clean, 100% renewable, zero-emissions energy from our volcanos.”

 

‘An Interesting Experiment’ 

International reaction has been fairly negative on El Salvador’s plans.

 

Benoit Coeure, the head of the Bank for International Settlements’ innovation hub, described the country’s decision as an “interesting experiment” — but he warned that BTC has not passed the test of being a dependable means of payment. He added: 

“Bitcoin is a speculative asset and should be regulated as such.”

Author(s)

Connor Sephton

I cover the crazy world of crypto.

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