Legal and financial concerns may arise according to the International Monetary Fund following the decision of El Salvador to make bitcoin a legal tender in the country.

IMF spokesperson Gerry Rice, speaking at a Thursday press briefing, said their group was already in the midst of discussions with lawmakers in El Salvador last year regarding a potential loan support to the country’s economy following approval of emergency funds related to the recent pandemic.

Rice added an IMF team will be meeting with President Nayib Bukele and as it would appear, crypto would be a topic for discussions.

Concerns about cryptocurrencies

“Adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis. We are following developments closely and we’ll continue our consultations with authorities,” said Rice following the legalization of the crypto as legal tender in El Salvador.

It is no secret that representatives from the IMF often voice their concerns about countries leaning towards digital currency.

Last March, a similar warning was issued against the recognition of Marshal Islands of its digital sovereign currency called SOV as a legal tender, citing the same potential legal and financial risks. Rice said the island’s economy, while strained by the economic fallout caused by pandemic, won’t be corrected with the SOV.

El Salvador picks up the phase

Some experts have noticed the short span of time that lapsed from the time the idea of having bitcoin accepted as legal tender in El Salvador was made public and the passing of the bill that made it a reality.

Bukele announced the historic decision via a recorded video message at the 2021 Miami Bitcoin Conference and just few days after that, news came out that the leader got the supermajority and had the law passed by their Congress.

Image courtesy of Cointelegraph News/YouTube

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Source: https://bitcoinerx.com/blockchain/imf-team-to-meet-with-el-salvador-president-after-making-bitcoin-a-legal-tender-in-the-country/