The International Monetary Fund (IMF) has firmly opposed the use of Bitcoin (BTC) as legal money, stating that El Salvador must undertake significant structural reforms, involving major adjustments to the nation's financial and economic policy. The IMF and El Salvador are negotiating a new finance arrangement, but neither party has reached a consensus yet. The IMF's Director of the Western Hemisphere Department, Rodrigo Valdes, stated that the IMF does not consider Bitcoin as legal tender and has not discussed removing BTC's status.
Reiterating that it is a "well-established truth" that the organisation opposes the use of Bitcoin (BTC) as legal money, the International Monetary Fund (IMF) has taken a firm stand on cryptocurrency. With El Salvador having recently accepted Bitcoin as its official currency, this declaration is being made in the midst of ongoing negotiations.
El Salvador has to undertake "significant" structural reforms, according to the IMF. These steps are expected to involve major adjustments to the nation's financial and economic policy, even if the specifics have not been made public.
A new finance arrangement between El Salvador and the IMF is being negotiated in addition to these worries.It was said that the most recent negotiation mission to the nation was a highly fruitful move.However, both parties admitted that they were "not there yet" in terms of coming to a consensus.
Rodrigo Valdes, Director of the IMF's Western Hemisphere Department, told Reuters that "our relations with El Salvador have been very productive.""We knew it would be a first step, but we only had one mission there—a negotiating mission," he stated.In response to a question on whether a shift in Bitcoin's legal status was on the table, Valdes stated: "I would prefer not to specify the exact measures that should be taken, but it is a known fact that we do not consider Bitcoin as legal tender."In general, we oppose it.
When asked if it was discussed to remove BTC's status, the Salvadoran administration remained silent.
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