The International Monetary Fund (IMF) has issued a critical statement regarding El Salvador’s Bitcoin bonds. The global body published a report stating that the country should address any risks.
The statement was made during a virtual discussion and covered several aspects of using the new technology. It noted the economic developments, outlooks, and risks that were taking place in the country. Among them is that the El Salvadorean economy grew at a healthy pace last year, bucking a global trend.
The IMF has criticized El Salvador’s decision to adopt BTC as a legal tender several times in the past. The authority has asked El Salvador to drop Bitcoin as a currency, though President Nayib Bukele has stuck to his guns.
Tourism in the country has shot up by 30% since it made Bitcoin legal, something that was expressly planned for by the government. However, Bitcoin’s volatility has also hit the country’s coffers hard.
(By Rahul Nambiampurath)
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