IMF Warned El Salvador About Bitcoin City

IMF warned El Salvador about Bitcoin city. El Salvador's Bitcoin moves continue to create backlash.

The International Monetary Fund (IMF) expresses at every opportunity that it does not support El Salvador's legal currency being BTC. As it is known, El Salvador made history as the first country to accept BTC as its legal currency. The country's Bitcoin law went into effect in September. However, according to the posts made by Salvadoran President Nayib Bukele, El Salvador bought 1,120 BTC. Considering the fast and hard volatility of Bitcoin; It seems really difficult to use it as a legal currency, consumer protection, financial integrity and financial stability. Due to these risks, the IMF does not find it appropriate to use Bitcoin as a legal currency and warns the country every time. The IMF believes that the provisions covered by the Bitcoin law need to be rearranged. The IMF, which wants the creation and supervision of a new payment ecosystem for El Salvador, made these statements one day after El Salvador announced Bitcoin City. On November 20, 2021, the IMF announced that buying BTC with government bonds and using it to finance infrastructure plans was wrong and should be discussed with the authorities. Evaluating the IMF's statement, Bukele made the following statements: “Even though we disagree on some issues like Bitcoin adoption, his analysis of our country is really interesting.”