IMF Wants El Salvador To Drop Bitcoin, But Some Salvadorans Aren't Having It

The International Monetary Fund (IMF) criticized Bitcoin BTC/USD and warned Salvadorans to rethink the idea.

What happened: On Jan. 26, the IMF warned the citizens of El Salvador about crypto adoption which recently saw a couple of dissenting replies from Salvadorans, Decrypt reports.

A 45-year-old mobile accessories seller Karen Hernandez said, "It has been a very, very good experience and increased our sales. It has taken us to another level of business."

"We give the customers a little orientation on how to use the wallet ... Once they learn how to use it, they buy something from us. It's a win-win situation," said Elizabeth Arevalo, who works at a computer store.

The IMF noted Bitcoin adoption could pose many long-term side effects — low financial stability, risks market integrity and creating liabilities — for the people of El Salvador.

See Also: Is Bitcoin a good investment?

Crypto adoption could help Salvadorans with wider access to financial and banking services. Nonetheless, it could pose some security risks including hacks and theft as Salvadorans reported missing funds from their Chivo wallets — El Salvador’s official crypto wallet — in December 2021.

Photo: Jorono from Pixabay