The International Monetary Fund (IMF) has urged El Salvador to drop the status of Bitcoin as the country’s legal tender, citing a series of risks, including to financial stability. The IMF’s cautionary remarks about the Central American country using Bitcoin as its official currency alongside the U.S. dollar came in a review note following a so-called Article IV consultation mission that assessed financial developments in El Salvador. While the IMF team praised El Salvador’s efforts to boost financial inclusion, including by rolling out the Chivo e-wallet, which is part of the country’s cryptocurrency ecosystem, they stressed the need for “strict regulation and oversight” of both Chivo and Bitcoin. IMF directors “stressed that there are large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities,” while urging El Salvador lawmakers to remove Bitcoin’s status as legal tender. …