#bitcoins-legal-tender-status/" target="_blank" rel="noreferrer noopener">Original Article By Nelson Wang At Cointelegraph.com

The executive board of the International Monetary Fund recommended that El Salvador discontinue the use of #bitcoin (BTC) as legal tender in in the country due to the financial risks and liabilities created.

  • The recommendation came in a report issued on Tuesday following bilateral discussions with El Salvador about its economy. El Salvador has been #bitcoin/" target="_blank">in negotiations with the IMF for a $1.3 billion loan.
  • IMF directors “stressed that there are large risks associated with the use of #bitcoin on financial stability, financial integrity and consumer protection, as well as the associated fiscal contingent liabilities,” according to the report.
  • Directors also “urged the authorities to narrow the scope of the Bitcoin Law by removing #bitcoin’s legal tender status. Some directors also expressed concern over the risks associated with issuing #bitcoin-backed bonds.”
  • In November, IMF staff said #bitcoin-should-not-be-legal-tender-in-el-salvador-imf/" target="_blank">#bitcoin should not be used as legal tender in El Salvador and urged the Central American country to strengthen the regulation and supervision of its newly established crypto payment ecosystem.
  • El Salvador adopted #bitcoin as legal tender in September and its president, Nayib Bukele, has become a vocal proponent of the cryptocurrency.
  • The country has been accumulating #bitcoin and recently #bitcoins-amid-market-drop/">bought 410 more #bitcoins, reaching more than 1,500 BTC held. El Salvador also #bitcoin-city-use-500m-of-planned-1b-bond-offering-to-buy-more-crypto/">plans to issue a $1 billion #bitcoin bond this year that will be 10 years in duration and U.S.-dollar denominated.