The IMF has warned on countries using cryptocurrencies as legal tender, just over a month before El Salvador is set to become the first nation in the world to allow bitcoin to pay for everything from haircuts to taxes.
The Washington-based lender said in a late July blog post that widespread use of cryptocurrencies would threaten “macroeconomic stability”, and potentially also harm financial integrity, through crypto’s links with illicit activity.
The IMF did not refer to El Salvador directly. But as it is in talks with the Latin American country over a $1bn loan, its warning suggests 40-year-old president Nayib Bukele’s plans could complicate relations.
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