Douglas Rodriguez, president of the Central Reserve Financial institution of El Salvador, has dismissed fears that the nation adopting Bitcoin (BTC) as authorized tender will scupper plans for a $1.3-billion mortgage facility from the Worldwide Financial Fund (IMF).

In keeping with Bloomberg on Tuesday, Rodriguez stated that the central financial institution doesn’t see any dangers related to the Bitcoin Legislation even because it prepares to safe an prolonged mortgage facility from the IMF.

Certainly, the central financial institution described El Salvador’s Bitcoin Law as solely having “upside dangers,” with Rodriguez stating {that a} BTC bull run may assist the nation’s economic system develop by over 9% greater than preliminary forecasts.

In keeping with Rodriguez, the central financial institution has defined to the IMF that “Bitcoin is just a cost technique.”

As previously reported by Cointelegraph, El Salvador’s authorities says Bitcoin acceptance continues to develop with individuals promoting extra United States {dollars} to purchase BTC.

Uncertainty over the destiny of the IMF talks, in addition to the current BTC adoption as authorized tender, has seemingly had a major impact on the nation’s credit standing.

El Salvador’s bonds declined sharply in September following “Bitcoin Day” within the nation, placing much more significance on the result of the IMF mortgage deal.

Associated: El Salvador removes BTC price feed from Chivo app to crack down on arbitrage scalpers

In keeping with central financial institution figures, with El Salvador’s exterior debt rising to $18.45 billion in Q2 2021, securing the IMF mortgage facility could possibly be essential to making sure entry to the worldwide market in 2022.

IMF officers have criticized El Salvador’s Bitcoin adoption, calling the transfer “an inadvisable shortcut” that might have dire penalties for the nation.

Critics of the transfer from the mainstream finance sector have pointed to volatility and cash laundering as among the many seemingly systemic risks posed by accepting BTC as legal tender.