The International Monetary Fund (IMF) has cautioned El Salvador against using tokenized bonds to fund Bitcoin purchases and urged it to reconsider its plan to expand its exposure to the cryptocurrency.
In a statement following the so-called “Article IV” visit by IMF staff to the Central American republic, the lender noted that although the downsides of using Bitcoin had “not materialized”, it still posed an imminent threat to the country’s economic stability.
The IMF expressed concerns over the risks that Bitcoin could bring to financial stability, fiscal sustainability, and customer protection urging the government to be more open in its management of Chivo and the Bitcoin trust fund (FIDEBITCOIN), including auditing.
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