CRYPTO

The adoption of bitcoin will not affect the IMF talks, said El Salvador’s top central banker

Douglas Rodriguez, president of the Central Reserve Bank of El Salvador, has dismissed fears that a গ্রহণ 1.3 billion facility from the International Monetary Fund (IMF) would be scrapped if the country accepted Bitcoin (BTC) as a legal tender.

According to Bloomberg on Tuesday, Rodriguez said the central bank does not see any risks related to the Bitcoin Act to ensure increased loan benefits from the IMF.

In fact, while the central bank described El Salvador’s bitcoin law as a “reverse risk,” Rodriguez said a BTC bull run could help the country’s economy expand by 9% more than initially forecast.

According to Rodriguez, the central bank explained to the IMF that “Bitcoin is just a payment method.”

As previously reported by Cointelegraph, the El Salvador government says Bitcoin acceptance is steadily increasing for those who sell US dollars to buy BTC.

Uncertainty over the fate of the IMF talks, as well as the recent acceptance of BTC as a legal tender, seems to have had a significant impact on the country’s credit rating.

El Salvador’s bonds fell sharply in September after “Bitcoin Day” in the country, putting even more emphasis on the outcome of the IMF loan agreement.

Related: El Salvador removes BTC price feed from Chivo app to crack down on arbitrage scalpers

As El Salvador’s external debt rises to $ 18.45 billion in 2021 Q2, according to central bank figures, it may be important to secure IMF loan facilities to ensure access to global markets in 2022.

IMF officials have criticized El Salvador’s adoption of bitcoin, calling the move “an inevitable shortcut” that could have dire consequences for the country.

Critics of the move from the mainstream finance sector have taken BTC as a legal tender, pointing to instability and money laundering among potential procedural risks.