El Salvador's bitcoin risks 'have not materialized,' IMF says

Quick Take

  • After an annual visit, the IMF said the risks of El Salvador’s bitcoin adoption “have not materialized” but caution is warranted.
  • The financial agency urged the Central American nation to reconsider plans to expand its crypto adoption.

The International Monetary Fund said the risks of El Salvador's bitcoin adoption "have not materialized" — primarily thanks to its "limited" use — but caution is warranted.

"Given the legal risks, fiscal fragility and largely speculative nature of crypto markets, the authorities should reconsider their plans to expand government exposures to bitcoin," the IMF said in