IMF: “El Salvador Should Address Bitcoin Risks”

After its visit to El Salvador, the International Monetary Fund (IMF) made statements about Bitcoin adoption in the country.

The increasing prevalence of cryptocurrencies and their use cases have led to an increase in adoption rates. Reflected by the term digital gold, Bitcoin was also on the main agenda of many countries. The Central American country, El Salvador, was at the center of its target arrows by making Bitcoin the official currency. El Salvador President Nayib Bukele announced that they are the first country to adopt Bitcoin. The IMF, which made a visit to the country the other day, touched on the Bitcoin situation in the country.

The International Monetary Fund (IMF) paid a visit to the Central American country, El Salvador, yesterday. Talking about Bitcoin here, the IMF made various statements. The IMF stated that with El Salvador’s adoption of Bitcoin, the relevant risks on the table did not materialize. However, the organization suggested that the use of cryptocurrencies still requires more transparency and attention. Sharing its views on the subject, the IMF said;

“Given the legal risks, financial fragility, and largely speculative nature of crypto markets, authorities should reconsider the government’s plans to expand Bitcoin exposures.”

This annual visit by the IMF comes after investors’ concerns over their financial resources and fiscal policies. In addition, the IMF stated that the use of cryptocurrencies may become widespread in line with the necessary legal frameworks and in the light of possible incentives.