The IMF says it is has legal and economic concerns about El Salvador’s move to make bitcoin legal tender

The IMF says it is has legal and economic concerns about El Salvador’s move to make bitcoin legal tender

The International Monetary Fund on Thursday has raised alarms over El Salvador's historic move in approving legislation to make bitcoin legal tender. It is the first country in the world to do so. "Adoption of bitcoin as legal tender raises a number of macroeconomic, financial, and legal issues that require very careful analysis," said Gerry Rice, an IMF spokesman, during a scheduled press briefing, . He continued: "Crypto assets can pose significant risks and effective regulatory measures are very important when dealing with them." The congress of El Salvador on Wednesday voted in favor of a law to in what many viewed as a milestone for the cryptocurrency, including President Nayib Bukele. "Every restaurant, every barber shop, every bank - everything can be paid in U.S. dollars or Bitcoin and nobody can refuse payment," Bukele said Tuesday evening during a social media hangout. Bitcoin rose around 17% from its intraday low following the news. Once the passes through the legislative processes, bitcoin will have the same status as the US dollar, the country's current national currency. Bitcoin will automatically and immediately be converted into US dollars upon use. "We are following developments closely, and we'll continue our consultations with the