El Salvador Adopts Bitcoin As Legal Tender, IMF Raises Concerns

Published date21 June 2021
Subject MatterFinance and Banking, Technology, Financial Services, Fin Tech
Law FirmCadwalader, Wickersham & Taft LLP
AuthorMr Cadwalader, Wickersham & Taft LLP

El Salvador's legislature voted to adopt bitcoin as legal tender. According to reporting by CNBC, the bill states that "the purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out." CNBC further reported that President of El Salvador Nayib Bukele partnered with Strike, a digital wallet company, to enhance the country's financial infrastructure.

In a press conference on June 10, 2021, International Monetary Fund ("IMF") Communications Director Gerry Rice stated "that adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require...

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