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Bitcoin warning from the IMF to El Salvador: It carries big risks

The International Monetary Fund (IMF) has warned El Salvador not to use Bitcoin as its official currency, considering the risks...

Bitcoin warning from the IMF to El Salvador: It carries big risks
Yazar: James Gordon

Yayınlanma: 27 Ocak 2022 02:45

Güncellenme: 29 Mart 2024 13:53

In the statement made by the IMF, it was reported that the 4th article consultation on the economy of El Salvador had been completed.

Pointing out that El Salvador has been using the cryptocurrency Bitcoin as its official currency since September 2021, it was stated that the adoption of a cryptocurrency as an official currency poses great risks to the market, financial integrity, financial stability, and consumer protection.

In the statement, which stated that IMF officials called for the removal of Bitcoin's official currency status in the country and the narrowing of the scope of Bitcoin law, it was stated that concerns were also expressed about the risks associated with Bitcoin-based bonds issuance.

In the statement, it was noted that El Salvador's economy, which was estimated to have grown by 10 percent last year, is expected to grow by 3.2 percent this year.

The Central American country of El Salvador started using the cryptocurrency Bitcoin as its official currency in September 2021.

El Salvador, which broke new ground in the world by officially putting Bitcoin into circulation, has accelerated its steps in the field of cryptocurrency with initiatives such as Bitcoin mining with volcanic energy, establishing a "Bitcoin City" and issuing Bitcoin bonds.

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