IMF Says Engaging With El Salvador on Bitcoin
19:56 GMT 21.10.2021 (Updated: 20:55 GMT 19.10.2022)
© AP Photo / Dado RuvicA representation of virtual currency Bitcoin is seen in front of a stock graph in this illustration taken January 8, 2021
© AP Photo / Dado Ruvic
WASHINGTON (Sputnik) – The International Monetary Fund (IMF) continues cooperating with the authorities of El Salvador on issues related to the adoption of bitcoin as legal tender, the IMF’s Western Hemisphere Department acting director, Nigel Chalk, told reporters on Thursday.
"We are actively engaged with the El Salvadoran government and helping them think through some of the risks and downsides to address them," Chalk told a virtual press briefing.
He expressed concerns about El Salvador’s decision, adding that it raises fiscal and financial stability questions.
Bitcoin will be up for negotiation between the fund and the country over Article IV of the IMF agreement, which concerns obligations regarding exchange arrangements, Chalk said.
On June 5, El Salvador President Nayib Bukele declared that bitcoin would become legal tender in his country. Several days later, the Salvadoran legislature passed the Bitcoin Law, which went into effect on September 7.