IMF Executive Board Recommends El Salvador To Cancel Bitcoin Legal Tender

Published by
IMF Executive Board Recommends El Salvador To Cancel Bitcoin Legal Tender

The International Monetary Fund (IMF) has issued a recommendation to El Salvador on using Bitcoin as a legal tender. According to the global financial institution, the continued use of Bitcoin as legal tender poses serious threats to El Salvador’s financial stability as well as consumer protection.

Advertisement

IMF Raises Concerns Over Consumer Protection

On Tuesday, the executive board of the IMF recommended that El Salvador should halt the use of bitcoin as legal tender in the country for reasons bordering around the financial risks attached to it.

The report stressed even further the risks linked to the use of Bitcoin especially regarding consumer protection and financial stability and integrity. The report then urged Salvadoran authorities to regulate the Bitcoin law simply by discontinuing the legal tender status of Bitcoin.

Additionally, some of the IMF Directors also expressed concern over the risks that might come with issuing Bitcoin-backed bonds.

Meanwhile, back in November 2021, an IMF staff had already shared opinions against the use of Bitcoin as legal tender in El Salvador.  In fact, the staff suggested that the Central American country should rather focus on strengthening its regulatory framework and also, the supervision of its newly established crypto payment ecosystem.

El Salvador has been widely publicized, especially since September 2021 when it adopted Bitcoin as legal tender.

Meanwhile, the President of El Salvador, Nayib Bukele has also become a crypto advocate and one of the most prominent and easily recognizable crypto advocacy voices.

 

Advertisement

Share
Mayowa Adebajo

Mayowa Adebajo is a fintech enthusiast with a decade-long experience writing news stories and creating content generally. When he's not writing, he's either talking politics or discussing sports.

Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • News

Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?

Bitcoin traders are turning their attention to this week’s Federal Open Market Committee (FOMC) meeting.…

October 26, 2025
  • News

White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC

White House crypto czar David Sacks has shown his support for Donald Trump's nomination of…

October 25, 2025
  • News

Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role

Crypto firm Ripple has revealed that it is exploring new ways to use XRP within…

October 25, 2025
  • News

Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms

Kyrgyzstan has made a significant move in the adoption of digital finance. It has now…

October 25, 2025
  • News

Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing

Ripple-backed Evernorth's XRP treasury has grown to $1 billion just days after the company announced…

October 25, 2025
  • News

Trump Tariff Tensions Ease as U.S. and China Hold Positive Trade Talks Ahead of Oct 30 Summit

In fresh developments, the United States and China’s trade teams have commenced negotiations on the…

October 25, 2025