He International Monetary Fund (IMF) considers that the risks from the use of the bitcoin in The Savior “should be considered”even though said “risks have not materialized due to limited use” of the cryptoactive so far.
The IMF reported this Friday in a statement that a mission from the organization, headed by Raphael Espinoza, held virtual discussions with Salvadoran authorities from January 26 to 27 and visited San Salvador between January 30 and February 8 for the consultation. of Article IV of 2023.
Among the aspects indicated by the mission in the note, it is indicated that the use of bitcoin “could grow given its legal tender status and new legislative reforms to encourage the use of crypto assets.”
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The Legislative Assembly of El Salvador, dominated by the ruling party, approved on January 11 a law that establishes the creation of a bitcoin fund manager and that would promote the issuance of bonds linked to the cryptocurrency.
“In this context, underlying risks to financial integrity and stability, fiscal sustainability and consumer protection persist”points out the mission.
Points out that the “Greater transparency about government bitcoin transactions and the financial condition of the state-owned bitcoin wallet (Chivo Walet) remain essential, especially to assess underlying tax contingencies and counterparty risks.”
The IMF mission believes that “Financing of bitcoin purchases by issuing tokenized securities (Bitcoin-linked bonds) should be avoided due to tax risks.”
“Given legal risks, fiscal fragility, and the largely speculative nature of crypto markets, authorities should reconsider their plans to expand government exposure to bitcoin, including through the issuance of tokenized bonds.”underline.
And adds: “the use of proceeds by the new bitcoin fund management must follow regular spending controls and good governance practices and the guarantees granted by the new Digital Assets Law must be equivalent to those of traditional securities regulations” .
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The International Monetary Fund urged El Salvador in January 2022 to “eliminate the quality of legal tender” of bitcoin and expressed his “worry” for the issuance of cryptocurrency-backed bonds.
El Salvador became a world cryptocurrency laboratory in September 2021 with the adoption of bitcoin as legal tender.
Source: EFE
Source: Gestion
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