IMF calls on El Salvador to abandon the legalization of BTC

by in Cryptocurrency News

IMF

In mid-June, the International Monetary Fund criticized the actions of the El Salvadorian leadership legalizing bitcoin.

According to the representative of this organization, Jerry Wright, the recognition of cryptocurrency as a means of payment creates a dangerous precedent. The stability of the global financial system could be undermined if other states follow the lead of El Salvador.

This week, the IMF again appealed to the authorities of the Latin American country with a call to abandon the recognition of bitcoin. The fund's official Twitter statement notes that assets, such as BTC, are issued by private individuals. The legalization of cryptocurrencies is fraught with great risks.

Trending: Smart Contracts Audits Startup Hexens Closed $4.2 M Seed Funding

The IMF also stressed: "It is not advisable to make cryptocurrencies equivalent to the national currency."

Note that many international financial institutions are against the legalization of digital assets.

The World Bank, for example, recently refused to help the government of El Salvador develops a mechanism for the introduction and use of bitcoin in the domestic market.