IMF Urges El Salvador to Ditch Bitcoin’s Legal Tender Status

First American News LLC, Raleigh NC: After adopting bitcoin as the national currency, Central American country plans to issue bonds backed by bitcoin as negotiations with the IMF stall. The International Monetary Fund urged El Salvador to strip bitcoin of its status as legal tender because of its large risks to financial stability, the latest twist in protracted talks between the fund and the highly indebted Central American country to secure a $1.3 billion loan, said Gaby Mendoza of MB Daily News.

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The fund said on Tuesday that El Salvador’s recent adoption of bitcoin as a national currency also creates risks for financial integrity, consumer protection, and fiscal liabilities in a tiny economy with limited government resources.

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