Douglas Rodríguez, president of the Central Reserve Bank of El Salvador, has dismissed fears that the country will adopt Bitcoin (BTC) as legal tender will ruin plans for a $ 1.3 billion credit line from the International Monetary Fund (IMF).
According to Bloomberg on Tuesday, Rodríguez set that the central bank does not see any risk associated with the Bitcoin Law even as it prepares to secure an extended loan line from the IMF.
In fact, the central bank described El Salvador Bitcoin Law as only having "upside risks", with Rodriguez stating that a bull run on BTC could help the country's economy expand by more than 9% more than initial forecasts.
According to Rodríguez, the central bank has explained to the IMF that "Bitcoin is simply a payment method."
As previously reported by CointelegraphThe government of El Salvador says that acceptance of Bitcoin continues to grow with people selling more US dollars to buy BTC.
Uncertainty about the fate of the IMF talks, as well as the recent adoption of BTC as legal tender, has apparently had a significant effect on the country's credit rating.
El Salvador's bonds decreased dramatically in September after the "Bitcoin Day" in the country, which gives even more importance to the result of the IMF loan agreement.
Related: El Salvador Removes BTC Price Feed From Chivo App To Crack Down On Arbitrage Resellers
According to central bank figures, with El Salvador's foreign debt increasing to $ 18.45 billion in the second quarter of 2021, securing the IMF's credit line could be crucial to guarantee access to the global market in 2022.
IMF officials have criticized El Salvador's adoption of Bitcoin, describing the measure as "an inadvisable shortcut" that could have dire consequences for the country.
Critics of the mainstream financial sector movement have pointed to volatility and money laundering as some of the likely Systemic risks posed by the acceptance of BTC as legal tender..
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