The International Monetary Fund (IMF) says decisions like El Salvador’s choice to make bitcoin a legal tender as of Sept. 7 and the adoption of other cryptocurrencies as national currencies is fraught with problems and could destabilize a country’s macroeconomic standing.
“Privately issued crypto-assets like bitcoin come with substantial risks,” IMF warned in a tweet on Saturday (Aug. 28). “Making them equivalent to a national currency is an inadvisable shortcut.”