Douglas Rodriguez, President of the Central Reserve Bank of El Salvador, dismissed concerns about the country’s adoption of Bitcoin.Bitcoin), because fiat currency will undermine the 1.3 billion U.S. dollar loan program of the International Monetary Fund (IMF).
According to a Bloomberg report on Tuesday, Rodriguez statement The central bank did not see any risks associated with the Bitcoin law, even though it was preparing to obtain a deferred loan from the International Monetary Fund.
In fact, the central bank described El Salvador’s Bitcoin Law Because there is only “upside risk”, Rodriguez said that the BTC bull market can help the country’s economic growth more than 9% more than originally predicted.
According to Rodriguez, the central bank has explained to the International Monetary Fund that “Bitcoin is just a method of payment.”
As Cointelegraph previously reported, The government of El Salvador stated that as people sell more dollars to buy BTC, the acceptance of Bitcoin continues to grow.
The uncertainty of the fate of IMF negotiations and the recent adoption of BTC as legal tender seems to have had a significant impact on the country’s credit rating.
El Salvador’s bonds Significant decline in September After the country’s “Bitcoin Day”, the outcome of the IMF loan agreement is even more important.
According to data from the Central Bank, as El Salvador’s external debt increases to US$18.45 billion in the second quarter of 2021, access to the IMF’s loan facility is essential to ensure access to the global market in 2022.
Officials of the International Monetary Fund have Criticizing El Salvador for adopting Bitcoin, Calling this an “unwise shortcut” and may have terrible consequences for the country.
Critics of the shift in the mainstream financial sector point out that volatility and money laundering are possible The systemic risk of accepting BTC as a legal currency.