Members of the IMF’s board said the country’s decision to leverage bitcoin within its financial system could pose risks.
. The report notes that El Salvador is being “urged” by the IMF board directors to do away with the bitcoin law as soon as possible.
IMF board members have “urged the authorities to narrow the scope of the Bitcoin law by removing bitcoin’s legal tender status,” the report detailed on Tuesday. The news follows apublished two weeks ago by IMF economists which stressed: “[cryptocurrencies] could soon pose risks to financial stability especially in countries with widespread crypto adoption.”
The IMF director’s report also noted that some members of the IMF are “expressed concern over the risks associated with issuing bitcoin-backed bonds..” During the first week of January, the Salvadoran governmentEl Salvador has been headstrong about integrating bitcoin (