The organization believes that using the first cryptocurrency as a means of payment is dangerous for consumers, the financial integrity and stability of the country.
The International Monetary Fund released a report in which it again criticized the El Salvadorian authorities for giving bitcoin the status of a legal tender. The document says that using a highly volatile asset like bitcoin as a means of payment entails risks for consumers, as well as the financial integrity and stability of the country.
The authors of the report recommended that the government of El Salvador strengthen the regulation of cryptocurrencies, as well as narrow the scope of the law on the legalization of bitcoin.
"It is necessary to immediately introduce stricter regulation and supervision of the payment ecosystem in order to protect consumers, combat money laundering and terrorist financing, and manage risks," the document says.
El Salvador's President Nayib Bukele expressed disagreement with the opinion of IMF experts on the legalization of bitcoin, but called the organization's report "interesting."
In July, the IMF already warned El Salvador about the risks associated with the legalization of bitcoin and the use of cryptocurrency as a means of payment.
On November 21, El Salvador's authorities announced the creation of the world's first cryptocurrency city, Bitcoin City. Its residents will be exempt from all taxes except VAT. The city will have a rounded shape and an exhibition complex in the form of a giant “B” symbol will be created in its center.
El Salvador is the first country in the world where bitcoin has legal tender status (on par with the US dollar). On September 7, the corresponding law came into force in the country. On the same day, the authorities bought the first 550 bitcoins. Additional purchases of bitcoins were made by the El Salvadorian authorities on September 20 (150 BTC) and October 28 (420 BTC).