IMF Tells El Salvador: Costs of Making Bitcoin Legal Tender Exceed Potential Benefits – Regulation Bitcoin News

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'In the near-term, the actual costs of implementing Chivo and operationalizing the Bitcoin law exceed potential benefits,' said IMF. cryptocurrency crypto

IMF Tells El Salvador: Costs of Making Bitcoin Legal Tender Exceed Potential Benefits

El Salvador became the first country to adopt bitcoin as an official currency with legal tender status alongside the U.S. dollar in September last year. The IMF report notes that the Salvadoran government’s Chivo wallet, which can be used for dollars and, has “amassed a sizeable number of clients, 3.8 million, although it is unclear how many are using bitcoin in their transactions or holding balances in bitcoin.

The IMF estimates that the short-term budgetary costs are 1% of GDP for 2021-2022 while near-term gains may measure up to ¼% of GDP per year.By adopting bitcoin as legal tender considerable risks are introduced to financial stability, financial and market integrity, and consumer protection … If the use of bitcoin increases significantly, it can risk the dollarization regime that has proven to be [a] successful nominal anchor for the economy.

The International Monetary Fund added that “Three other areas require prompt corrective measures.” Two of the areas are “Developing strict Chivo’s regulatory oversight” and “Safeguarding financial stability and adapting the banking regulatory frameworks.”

 

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They may just look into the futue when cryptos will change fiat currencies. Jumping from taht it is useful to make bitcoin legal tender or any other popular crypto.

So wait - we're supposed to sit quietly and take advice from a bunch of billionaire dorks who's only mission in life is to control the majority of the population..? Right... brilliant...

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As I understand... Chivo is the only inconvenience of Bitcoin as a legal tender in El Salvador Does someone has an insight on this?

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Central banks can see their power dwindling and it’s scaring them

'If the use of bitcoin increases significantly, it can risk the dollarization regime that has proven to be [a] successful nominal anchor for the economy.'

IMF's report looks like FED talking, the same tone.

Old farts scared they won't be in charge of who's rich and who's poor any longer. Well, they're right.

Sounds threatening -- even menacing...

“In the near term”

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Lol, “in the near term” means that revolutionizing money and the country’s sovereignty will have a startup cost. They left off “in the long term it will change the world.”

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