El Salvador’s decision to recognize the first cryptocurrency as legal tender could pose a number of risks and regulatory concerns. This was stated at a press conference by a representative of IMF Jerry Rice.
“The adoption of Bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require careful analysis, so we are closely following developments and continue our consultations with the authorities. [Сальвадора]”Rice said.
According to him, crypto assets can pose significant risks, therefore, when working with them, an effective regulatory policy plays an important role. The official noted that the IMF is “working closely” with other organizations involved in the study of digital currencies.
Rice added that on June 10, IMF specialists held a virtual meeting with El Salvador President Nayyib Bukele. They discussed a potential lending program and “policies to strengthen economic governance.”
On June 9, 2021, the Legislative Assembly of El Salvador adopted a law recognizing the first cryptocurrency as an official means of payment in the country on a par with the US dollar.
Bukele commissioned state energy company LaGeo to draw up a plan to set up bitcoin mining businesses. According to the president, the mining hub will be designed around a new geothermal well with a capacity of 95 MW.
Soon, that well is going to look like this…
And half a mile from it, the #bitcoin mining facility.
Designing that as we tweet. pic.twitter.com/KXtOZkocrq
– Nayib Bukele 🇸🇻 (@nayibbukele) June 11, 2021
Some experts believe that the adoption of Bitcoin by El Salvador could jeopardize the agreements between the state and the IMF.
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