IMF plans to meet El Salvador’s president, Even Possibly discussing move to Embrace Bitcoin

The International Monetary Fund has spoken out from smaller countries like the Marshall Islands understanding an electronic currency as legal tender.
The International Monetary Fund has said El Salvador’s current choice to create Bitcoin legal tender in the state can raise financial and legal concerns.In that a Thursday press briefing in the International Monetary Fund, or IMF, spokesperson Gerry Rice explained the group was in discussions with lawmakers in El Salvador on a loan to support the nation’s market, having approved emergency funds linked to the pandemic year. But, Rice said that an IMF staff would be meeting with President Nayib Bukele today and implied crypto are a likely topic for debate. “Adoption of Bitcoin as legal tender increases lots of macroeconomic, financial and legal problems that require careful analysis,” said Rice. Spokespeople for the IMF have often voiced worries about nations embracing digital money. During March, the group issued a similar warning against the Marshall Islands’ understanding its digital sovereign currency, called SOV, as legal tender, as it may pose comparable financial and legal risks. If that’s the instance, a spokesman said the islands’ local economy was strained by the financial fallout of the outbreak and probably would not be corrected with all the SOV.Related: Marshall Islands digital currency would’raise risks,’ states IMFIn the case of El Salvador, time between the introduction of ideas and action is seemingly brief. President Bukele first announced he would propose a bill making Bitcoin (BTC) legal tender in El Salvador in a pre-recorded video message in the Bitcoin 2021 conference that weekend. The laws passed by a supermajority at the nation’s Legislative Assembly yesterday. Though the nation is still seeking assistance from the IMF related to the pandemic this season, it has already started to think about the energy demands of Bitcoin miners. Bukele said he would be teaching state-owned electric firm LaGeo, to create certain facilities accessible to miners to use geothermal power from the nation’s volcanoes — El Salvador currently operates the two geothermal plants at Ahuachapán and Berlín. “Crypto assets can pose significant risks,” said Rice. “Powerful regulatory measures are very important when dealing with them.”

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