The leadership of the International Monetary Fund (IMF) once again called on the El Salvadoran government to refuse to recognize bitcoin as legal tender.
In a statement published on the organization’s website, it is emphasized that the use of the first cryptocurrency for payments “causes huge risks to financial stability, financial integrity and consumer protection, as well as to the accompanying fiscal obligations.”
“Members of the Board of Directors of the IMF are calling for narrowing the scope of the law on bitcoin and depriving this asset of the status of legal tender. The directors also expressed concern about the risks associated with the issuance of crypto-backed bonds by El Salvador,” the statement said.
Recall that El Salvador plans to issue bonds backed by bitcoins in the amount of $ 1 billion. They will be called Volcano Bonds, and the proceeds from the sale of bonds will go to the creation of Bitcoin City. It will be an innovation zone and a special tax haven.
Representatives of the IMF also touched on the state wallet Chivo. The article emphasizes that the idea itself is good and can increase the availability of financial services for the people of El Salvador. However, the system needs more regulatory oversight, as some wallet users have complained about missing funds and identity theft.
Note that this is not the first time the IMF has opposed the adoption of bitcoin as legal tender in El Salvador. So, in November, the organization said that bitcoin carries too many systemic risks.
