The International Monetary Fund (IMF) is seeing financial and legal problems with El Salvador’s grand decision to adopt Bitcoin as the world’s first fiat currency, Reuters reported on the 10th (local time).
IMF spokeswoman Gary Rice insists that the organization will closely follow these developments, while at the same time asserting that “cryptocurrencies pose significant risks.”
“Cryptocurrency assets can pose significant risks, and effective regulatory measures are very important when dealing with them.”
El Salvador’s President Naip Bukele announced on the 10th (local time) that he would hold talks with the International Monetary Fund (IMF) on Bitcoin.
El Salvador has been in talks to secure a loan of $1.3 billion from the International Monetary Fund (IMF) in early March to revitalize the economy.
Earlier this week, El Salvador approved Bukele’s Bitcoin bill with a majority of the votes, drawing attention as a watershed for the entire cryptocurrency industry.
When this ordinance goes into effect, all merchants will be required by law to accept Bitcoin. Products may be priced in cryptocurrency or US dollars, and are currently displayed on Wikipedia pages in the official currency of the country along with US dollars.
Also, immigrants can get permanent residency by investing 3 BTC in the country’s economy.
El Salvador plans to use geothermal electricity from the volcano to mine renewable cryptocurrencies.
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Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.