JPMorgan & Chase’s Latin American research team published a report titled “The Bitcoinization of El Salvador” Thursday.
JPMorgan says, “It is difficult to see any tangible economic benefits associated with adopting bitcoin as a second form of legal tender.”
El Salvador recently passed legislation making bitcoin legal tender alongside the U.S. dollar.
The International Monetary Fund (IMF) has warned of “a number of macroeconomic, financial, and legal issues” surrounding the decision to make bitcoin legal tender legal in El Salvador.
The report also adds that adopting bitcoin “may imperil negotiations with the IMF” for El Salvador, stating: “We believe the Bitcoin Law is complicating talks around IMF aid which we continue to believe is necessary to put El Salvadorian debt on a more sustainable footing.”