The country has used Bitcoin alongside the USD since 2021.
The recommendation comes as part of the organization’s consultation, where staff members visit a country and prepare a report that’s discussed by the IMF’s executive board. The summary from the board looks at and discusses El Salvador’s economic policies as a whole, but the country’s 2021 adoption of Bitcoin as a legal tender got a lot of attention.
from November that the country change its law because of the “large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities.” Some board members “also expressed concern over the risks associated with issuing Bitcoin-backed bonds,” according to the IMF.