The recent adoption of Bitcoin as a legal tender by the Latin American nation El Salvador has not gone well with global financial agencies like the IMF. Now, as the Latin American nation struggles to navigate through the economic downturn caused by the COVID-19 pandemic, its $1 billion financing plan from the International Monetary Fund stays at a critical point.
The IMF and El Salvador officials have been in consultation over the last few weeks ever since the Latin American country passed the controversial law. Earlier this month, IMF spokesperson Gerry Rice said:
“Adoption of bitcoin as legal tender raises several macroeconomic, financial, and legal issues that require very careful analysis. We are following developments closely, and we’ll continue our consultations with the authorities.”
On Wednesday, June 30, Victoria Nuland, U.S. undersecretary for political affairs, held talks with El Salvador President Nayib Bukele as part of her tour in the region. The diplomat said that she hopes IMF and El Salvador to settle the issue regarding the Bitcoin row, reported Reuters.
With the IMF raising concerns about El Salvador’s Bitcoin adoption, the $1 billion financing agreement remains on tenterhooks and under discussion.
