El Salvador’s decision to recognize bitcoin as an official means of payment carries risks and regulatory challenges, said International Monetary Fund spokesman Jerry Rice on Thursday.
The IMF is currently holding virtual meetings with the El Salvadorian authorities to discuss the issue. Also today a meeting with the President of the country Nayib Bukele is planned.
Bukele announced plans to recognize bitcoin as a legal tender last week, and the law was already approved on Wednesday . He also intends to use volcanic energy in bitcoin mining and invites miners to take advantage of the offer.
As noted by Bloomberg , Salvadoran bonds fell 71 basis points, showing the most negative dynamics of any emerging market this week.
Earlier, the IMF
recommended the Marshall Islands to abandon the idea of issuing their own digital currency.