Not Good for Financial Stability, IMF Urges El Salvador to Abandon Bitcoin as Legal Tender

The International Monetary Fund (IMF) urged El Salvador to abandon bitcoin as legal tender, according to a statement on Tuesday.

The IMF stressed that the use of bitcoin poses significant risks in terms of financial stability, financial integrity, consumer protection and related fiscal or related liabilities.

In September 2021, the Central American country of El Salvador became the first country in the world to adopt bitcoin as legal tender.

El Salvador's President Nayib Bukele has successfully linked his political future to bitcoin - the country has purchased hundreds of bitcoins in recent months. Just last Friday, the president also announced on social media that he had bought another $15 million worth of "very cheap" bitcoins as the cryptocurrency market was plummeting.