The International Monetary Fund (IMF) called for El Salvador to reverse his decision to implement Bitcoin legal providers.
In September, El Salvador became the first country with which consumers can use electronic money in all transactions along with the US dollar. ”
The decision led to large-scale protests over fears it would bring instability and inflation to the impoverished Latin American country.
Bitcoin has lost about half its value since November.
IMF warned Nayib Bukele President President about the risks, Cryiolocurcy launched the country and emphasized that it would be difficult to get a loan from the organization.
They highlighted the “large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection” and with issuing Bitcoin-backed bonds.
When El Salvador introduces a virtual money, the government has released a new digital purse, which has 30 (22) in Bitcoin for each citizen. Over 200 new cash dispensers are also installed nationwide.
It presented the measure as a way to boost economic development and jobs, but El Salvador has been divided by the move.
It means that businesses, wherever possible, are now obliged to accept the digital coins as payment.
Bitcoin is a controversial currency in part because its value can fluctuate significantly – it has risen and fallen dramatically over the past year.
Bitcoin was trading at about $37,000 on Tuesday, having lost about half its value compared to the record of $67,734 hit in November.
President Bukele announced in November plans to build a Bitcoin city at the base of a volcano in El Salvador, with the cryptocurrency used to fund the project.
