The IMF gave praise to El Salvador in a recent report. The International Monetary Fund (IMF), especially praising the country’s handling of the COVID-19 pandemic and noting that its economies grew by 10% in 2021, also praised the El Salvador government’s efforts to reduce crime, diversify the energy matrix, promote economic diversification and increase financial inclusion.
Things Are Changing When It Comes to Bitcoin
Bringing the word to Bitcoin in its report titled “El Salvador: Staff Concluding Statement of the 2021 Article IV Mission”, the IMF stated that it is completely against BTC. After praising El Salvador’s efforts to “promote financial inclusion and boost growth”, he slammed the government’s tool to achieve this.
Using Bitcoin as a legal tender given its high price volatility; contains significant risks to consumer protection, financial integrity and financial stability.
The IMF states that the use of BTC also leads to financial union obligations.
Considering all these risks, the IMF recommends narrowing the scope of the Bitcoin law and calls for strengthening the regulation and supervision of the new payments ecosystem. On the other hand, it emphasizes the immediate implementation of stronger regulation and supervision of the new payments ecosystem for consumer protection, anti-money laundering and counter-terrorism financing and risk management.
However, the IMF ignores the fact that Bitcoin’s volatility can bring positive results for its users and that the US dollar is going through an inflationary period.