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Ditch Bitcoin: IMF Urges El Salvador to Rethink Crypto

  • Risks with using cryptocurrency are large, IMF directors said
  • Board members also see risks in Bitcoin-backed bond issuance

The International Monetary Fund’s board urged El Salvador to strip Bitcoin of its status as legal currency due to its large risks, highlighting a major obstacle for the nation’s efforts to get a loan from the institution.

El Salvador last year sought a $1.3 billion IMF loan, but talks have been stymied by the lender’s Bitcoin concerns, and any program would need to be approved by the board.