Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

IMF Concerned About El Salvador's Bitcoin Legal Tender

IMF Concerned About El Salvador's Bitcoin Legal Tender

The International Monetary Fund (IMF) has expressed “economic and legal” concerns over the El Salvador’s new pro-BTC legislation: “Ley Bitcoin”, which was approved by the country's national congress.

Gerry Rice, an IMF spokesman, said during a scheduled press briefing in Washington:

“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis so we are following developments closely and will continue our consultation with authorities. Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them.”

The country’s Head of State, Nayib Bukele, will meet with the financial organism today. The government of that country apparently seeks to settle a $1 billion credit program. However, their Bitcoin Law could become a hurdle.

Rice added that crypto-assets can be a risk at a regulatory level. The IMF will discuss their article IV with El Salvador’s national government. According to this article, the financial institution can hold bilateral discussions with its members.

During these annual meetings, the government provides the IMF with economic and financial data. In addition, the government officials and the institution discuss economic developments and financial policies, such as the Bitcoin Law. Rice said that “policies to strengthen economic governance” will be on the meeting’s agenda.

Following the adoption of the bill to make bitcoin legal tender, El Salvador announced that it will be mining bitcoin using energy from volcanoes. “I’ve just instructed the president of La Geo (our state-owned geothermal electric company) to put up a plan to offer facilities for bitcoin mining with very cheap, 100% clean, 100% renewable, 0 emissions energy from our volcanos. This is going to evolve fast,” said President Bukele.

As El Salvador’s president has said, their new law has the objective of attracting capital into the country and turn it into a financial and innovation hub. There are many sectors, from miners to exchanges, already showing interest in moving their operations to the Latin American country.

Around 70% of the country’s population operates outside the traditional financial system, according to government data; Bitcoin has been used by everyday citizens to pay for basic goods, send remittances without a third party, and as a savings account. Thus, the Law seems to be targeted at helping them.

Dave Chapman, a founder at the BC Technology Group, compared El Salvador’s case with Facebook, Mark Zuckerberg, and the Libra Project. This company planned to launch its own digital asset pegged to a basket of currencies and received backlash from international organisms. The project was eventually shut down. Chapman said:


“The manner in which the IMF is reaching out to Nayib Bukele reminds me of the knee-jerk reaction central banks and regulators attacked Mark Zuckerberg when he suggested he was going to completely dislocate the traditional payments and remittances businesses. It’s inevitable.”

At the time of writing, BTC trades at $36,668 with a persistent downtrend across the board. In the short term, the $40,000 seems like the most important resistance that needs to be flint into support. Otherwise, the bull could find themselves vulnerable to another bear strike.

Source: IMF Concerned About El Salvador's Bitcoin Legal Tender – Fintechs.fi

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
JD.com Launches €2.2 Billion Bid for German Electronics Retailer Ceconomy
Azerbaijan Proceeds with Plan to Legalise Casinos on Artificial Islands
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
House Republicans Move to Defund OECD Over Global Tax Dispute
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
×