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FILE PHOTO: The International Monetary Fund’s logo appears outside the headquarters building in Washington, US, on September 4, 2018. (Reuters) / Yuri Gribas / File Photo
NEW YORK (Reuters) – The International Monetary Fund said on Thursday it has a number of economic and legal concerns regarding a move by El Salvador to make bitcoin a parallel legal tender.
El Salvador has become the first country in the world to adopt bitcoin as a legal currency, with President Nepe Bukele promoting its use of its ability to help Salvadorans living abroad send remittances home.
“The adoption of bitcoin as a legal currency raises a number of macroeconomic, financial and legal issues that require very careful analysis,” said Jerry Rice, a spokesman for the International Monetary Fund, during a scheduled press conference.
“We are following developments closely and will continue our consultations with the authorities.”
Later on Thursday, Rice said the fund will meet with Bukele to discuss bitcoin law. El Salvador is in discussions with the International Monetary Fund about a program of nearly $1 billion.
El Salvador’s law means that bitcoin will be equal to the dollar, which became its official currency 20 years ago.
Reporting by Rodrigo Campos. Edited by Chizu Nomiyama
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