Adoption of Bitcoin as legal tender raises issues: IMF

By Ovunc Kutlu

ANKARA (AA) – The adoption of Bitcoin as legal tender raises macroeconomic, financial and legal issues that require careful analysis, an International Monetary Fund (IMF) spokesperson said Thursday.

"We are following developments closely and will continue our consultation with authorities," Gerry Rice said in Washington, D.C. "Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them."

Rice noted that an IMF team is conducting virtual meetings with El Salvador on its Article IV review, on top of a potential credit program "including policies to strengthen economic governance."

He added that the team will meet El Salvador President Nayib Bukele later Thursday.

El Salvador approved the adoption of Bitcoin as legal tender on Wednesday — the first country to formally adopt the digital currency.