The International Monetary Fund is urging El Salvador to remove bitcoin as legal tender, reports Tuesday said. The IMF board is also asking for more regulations around the e-wallet used in El Salvador.
Bitcoin became legal tender in El Salvador in June 2021, a move that sparked protests across the country in September. When it launched, Salvadorans were able to use their national IDs to sign up for a cryptocurrency wallet app Chivo, which came with $30 worth of bitcoin as part of the government’s drive to adopt the cryptocurrency.
Read more: El Salvador and Bitcoin: Everything you need to know
The IMF didn’t immediately respond to a request for comment, but reportedly said in statements its board members “urged the authorities to narrow the scope of the bitcoin law by removing bitcoin’s legal tender status” after a consultation.
