It’s that time again; It International Monetary Fund (IMF) expresses concern about adoption somewhere in the world. This time it’s about embracing bitcoin (BTC) as a means of payment in the Central African Republic. There was a law passed that, just like in El Salvador, will elevate bitcoin to legal tender. The IMF is not pleased with these developments.
Central African Republic embraces bitcoin
earlier though the IMF lashed out at the government in El Salvador after they became the first country in the world to make bitcoin legal tender. According to the IMF, the policies of President Nayib Bukele and his advisers were frankly irresponsible. Bukele didn’t seem to mind this criticism.
The IMF’s criticism of the Central African Republic is very similar to its earlier criticism of El Salvador. The embrace of bitcoin would pose great dangers to the country’s financial stability. An IMF spokesman said at Bloomberg know the following:
“The adoption of Bitcoin as legal tender in the Central African Republic poses major challenges in terms of legislation, transparency and economic policy. IMF staff are helping regional authorities and the authorities of the Central African Republic to address the challenges posed by the new law.”
However, according to the government in the African country, the adoption of bitcoin will bring many benefits. It will aid in the much needed economic recovery after a long civil war in the country. In addition, it will actually stabilize the country’s economy, which the IMF seriously doubts.
Like El Salvador and the Central African Republic, there are other countries that may believe that bitcoin is seriously worth considering. It is therefore not excluded that soon more countries will follow El Salvador’s example and embrace bitcoin as legal tender.
The IMF will probably reconsider this in that scenario, but whether the countries in question will be aware of this is unlikely.