El Salvador:
El Salvador Adopts Bitcoin As Legal Tender, IMF Raises Concerns
21 June 2021
Cadwalader, Wickersham & Taft LLP
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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 very careful analysis. ... I can tell you that
the IMF team will be meeting with the president of El Salvador
today."
Primary Sources
- El Salvador Government Press Release: El Salvador,
primer país del mundo en reconocer al Bitcoin como moneda de
curso legal
- CNBC Press Release: El Salvador Becomes First
Country to Adopt Bitcoin as Legal Tender after Passing
Law
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