Following the announcement that El Salvador was gearing to accept Bitcoin as a legal tender, the International Monetary Fund (IMF) has registered its displeasure. The concerns of the organisation over the decision is due to the volatility of crypto assets. El Salvador happens to be the first sovereign entity to mark Bitcoin as suitable for a formal means of exchange.
IMF raised concerns on Thursday that touched on economic and legal implications of the proposed Bitcoin law. With the proposition tendered by the president of El Salvador Nayib Bukele, Bitcoin as a legal tender would be equally footed with the US dollar. However, the IMF isn’t satisfied with the decision and has announced that they’d approach the president regarding the issue.
IMF Spokesman Gerry Rice stated in a press review in Washington that the policy poses several “macroeconomic, financial and legal issues”. He announced that the organisation is following up the development and will proceed with deliberations. He asserted that cryptocurrencies poses significant risks and it’d be beneficial to employ regulatory actions when handling them.
El Salvador Plans to Use Energy from its Volcanoes to Mine Bitcoin
Just after the announcement that El Salvador has adopted the leading crypto asset, the issues about its energy was raised. The country has however announced that it’d be maximising the energy of its volcanoes for mining Bitcoins.
President Bukele said that he has instructed La Geo, the state-owned geothermal electric company, to make the required arrangements. Bukele is interested in mining Bitcoin with the use of an entirely clean, renewable and zero emissions sources.
Despite the recent development, the North American nation has some financial difficulties. The country is seeking a loan from the IMF that tunes to over $1 billion.