El Salvador must end the use of the crypto currency bitcoin as legal tender. So says the International Monetary Fund (IMF). According to the IMF, there are too many risks associated with bitcoin, which has recently gone into freefall and has lost nearly half of its value since peaking in November.
In September, El Salvador became the first country in the world to introduce bitcoin as legal tender, alongside the US dollar. The move was taken by President Nayib Bukele, who hopes that this will allow more people to use the financial system and send money back from abroad more easily.
The IMF has previously warned the small South American country against the use of bitcoin. But now the fund is using much harsher language. The IMF board says that bitcoin poses major risks around financial stability and consumer integrity and protection.
There have also been protests in El Salvador by bitcoin opponents who are concerned about the digital currency’s sharp swings in value.
Bitcoin, the world’s most famous cryptocurrency, was worth more than $37,000 on Wednesday morning. In November, the digital currency reached a record level of approximately $69,000.
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