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El Salvador last year applied for a $ 1.3 billion loan from the International Monetary Fund, but talks have been interrupted by the lender’s Bitcoin concerns.
The Council of the International Monetary Fund called on El Salvador to remove Bitcoin legally because of its high risks, highlighting a major obstacle to the nation’s efforts to obtain a loan from the organization.
El Salvador last year applied for a $ 1.3 billion NDF loan, but the talks have hampered the lender’s Bitcoin concerns, and any program should be approved by the commission.
The IMF’s chief executive, representing 190 of the fund’s member nations, highlighted Bitcoin’s “financial stability, financial integrity and consumer protection” and its risks to fiscal contingent liabilities, the fund said in a statement on Tuesday. They called on the authorities to “reduce the scope of the Bitcoin law by removing the legal status of Bitcoin.”
Some executives also expressed concern about the risks associated with issuing Bitcoin-backed bonds. Comments IV Annual Meeting of the Central American Nation the economic evaluation committees of the article came up for discussion.
El Salvador made the cryptocurrency in September with the U.S. dollar, making 40-year-old President Nayib Bukele an icon among crypto fans. El Salvador is the only country that has accepted Bitcoin so far.
The nation started buying Bitcoin last year when it was trading around $ 50,000 and has bought at least 1,801 coins. It fell 45 percent from a peak of nearly $ 68,000 in early November, which is likely the nation has lost about $ 20 million, according to Bloomberg News estimates.
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