IWF warns El Salvador of using Bitcoin as a legal means of payment after the announcement of Bitcoin City regulation
IWF warns El Salvador of using Bitcoin as a legal means of payment after the announcement of Bitcoin City regulation
The International Monetary Fund (IMF) has warned El Salvador against using the cryptocurrency of using Bitcoin as a legal means of payment. The warning came one day after the Salvadorian President Nayib Bukele announced his plan to build a "Bitcoin city" driven by a volcano and financed by Bitcoin bonds.
IMF says El Salvador should not use Bitcoin as a legal means of payment
The International Monetary Fund (IMF) warned El Salvador on Monday to use Bitcoin as a legal means of payment and referred to various risks related to cryptocurrency.
el Salvador is the first country in the world that Bitcoin as statutory " Means of payment In addition to the US dollar, which it has been using for two decades. The country's Bitcoin law came into force in September. In addition, El Salvador bought 1.120 btc , so the Salvadorian President Nayib Bukele.
The IMF regularly carries out article IV missions to member countries to advise themselves with government officials before they apply for the use of its resources. The IMF said that for El Salvador "the introduction of Bitcoin as a legal means of payment, the regulation and monitoring of Bitcoin service providers and the E-Wallet Chivo were discussed".
in his "final declaration of the staff of the article IV mission 2021" for El Salvador In detail :
The IMF then recommended that "to restrict the area of application of the Bitcoin Act" and urged El Salvador to "strengthen the regulation and monitoring of the new payment ecosystem".
The latest explanation of the IMF came one day after President Bukele had a plan for the construction of the world's first Bitcoin city driven by a volcano and financed by Bitcoin bonds. He found that there would be no taxes in the Bitcoin city apart from VAT (VAT).
"The plans announced on November 20 for the issue of government bonds and the use of revenues for the purchase of Bitcoin and the financing of infrastructure plans took place after the technical work of the mission was completed and were not discussed with the authorities," the IMF made clear.
In terms of the IMF's explanation, Bukele said:
Although we obviously do not agree in some things, such as when introducing Bitcoin, the analysis of our country is interesting.
What do you think that the IWF EL Salvador advises to use Bitcoin as a legal means of payment? Let us know in the comment area below.
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