El Salvador’s Bitcoin Adoption Won’t Affect Its IMF Talks

·2 min read

El Salvador has officially made Bitcoin a legal tender, and there were initial concerns it could affect its ongoing talks with the International Monetary Fund (IMF).

El Salvador’s Top Bank Said Bitcoin Adoption Won’t Affect IMF Talks

Douglas Rodriguez, the head of of the Central Reserve Bank of El Salvador, has pointed out that the adoption of Bitcoin (BTC) would not affect its talks with the International Monetary Fund (IMF). El Salvador set the record of becoming the first country in the world to make Bitcoin a legal tender.

However, there were concerns that the move could affect its plans for a $1.3-billion loan facility from the IMF. In an interview with Bloomberg earlier today, Douglas Rodriguez said the apex bank doesn’t see any risks associated with the country’s Bitcoin adoption even as it prepares to secure an extended loan from the financial institution.

Rodriguez added that there are only upside risks associated with the Bitcoin Law as a rally from the leading cryptocurrency could help El Salvador’s economy increase by more than 9% from its initial forecast. He added that the apex bank had explained to the IMF that Bitcoin was simply adopted as a payment method in the country.

BTC Still Struggling Below $63k

Bitcoin has rallied past the $60k over the weekend, thanks to the news of the Bitcoin futures ETF and other positive developments within the cryptocurrency space. However, it has been unable to surpass the $63k psychological point over the past 48 hours.

BTC/USD chart. Source: FXEMPIRE
BTC/USD chart. Source: FXEMPIRE

At the time of writing, BTC is trading at $62,295, up by 3% over the past 24 hours. It has been stuck around the $62k level for the past 24 hours. A break past the $63k psychological level would set Bitcoin up to surpass its current all-time high and set a new one above $65k.

Most crypto experts and analysts are optimistic that Bitcoin could reach the $100k level before the end of the year as the market rally resumes in the fourth quarter.

This article was originally posted on FX Empire


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