El Salvador’s proposal to make bitcoin legal tender was recommended by the International Monetary Fund’s board of directors, who also called for strict control of the country’s e-wallet.
Following a yearly consultation, IMF board members
“urged the authorities to reduce the scope of the Bitcoin law”
” by eliminating bitcoin’s legal tender status,” the IMF said in a statement on Tuesday.
The country has been urged by the International Monetary Fund (IMF) to change its bitcoin law.
El Salvador’s proposal to make bitcoin legal tender was urged by the International Monetary Fund’s board of directors, who also called for strict oversight of the country’s electronic wallet. Following a yearly meeting on Tuesday, IMF board members
“urged the authorities to reduce the scope of the Bitcoin law”
” by removing bitcoin’s legal tender status,” the IMF said in a statement.
El Salvador’s bitcoin law has been called into question by the IMF on several occasions.
According to the IMF, some board members were also concerned. Of course, about the risks associated with El Salvador’s planned issuance of bitcoin-linked bonds. The country is planning to issue $1 billion in bonds, with half of the proceeds going toward bitcoin purchases. The government hopes that the exposure to bitcoin profits would attract investors who will receive a dollar yield of 6.5 percent. Of course, which is significantly lower than the market’s current pricing for equivalent Salvadoran government debt. That’s, which is closer to 17 percent.
El Salvador’s public debt could increase to almost 96 percent of GDP in 2026, according to the IMF. That’s, if current debt spending levels are maintained, putting the country on a “unsustainable path.”
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