El Salvador’s ‘limited’ use of Bitcoin prevents forecasted risks, suggests IMF
The IMF has suggested that El Salvador “reconsider” its plans for Bitcoin, following a recent visit to the country. El Salvador has been advised to exercise caution in expanding government exposure to Bitcoin (BTC) due to the “speculative nature” of crypto markets by the global monetary watchdog. A Feb. 10 statement from the International Monetary Fund (IMF) emphasized that Bitcoin’s risks in El Salvador have “not materialized” yet due to its “limited” use so far, after IMF staff visited the country last week. It was suggested that El Salvador address these risks as Bitcoin’s use “could grow” given it has been recognised as legal tender in the country since Sept. 2021. El Salvador was warned to re-evaluate its plan to increase government exposure to Bitcoin due to both legal and financial dangers. The statemen noted: “Given the legal risks, fiscal fragility and largely speculative nature of crypto markets, the authorities should reconsider their plans to expand government exposures to...