- The IMF has urged El Salvador to strengthen its Bitcoin policies and overhaul regulations.
- The financial agency cites concerns over financial integrity and stability.
- The agency insists the country abandon Bitcoin and adopt the traditional financial system.
The International Monetary Fund (IMF) has once again urged El Salvador to reconsider its Bitcoin policies. In a press conference on October 3, 2024, IMF spokesperson Julie Kozack highlighted the IMF’s instance to overhaul El Salvador’s regulatory policies.
The financial agency cited concerns over financial integrity and stability. Reluctant to disclose the exact details behind the proposal, Kozack stated,
What we have recommended is a narrowing of the scope of the Bitcoin Law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin.
The IMF’s disagreement with El Salvador’s Bitcoin policies has been ongoing for years. In November 2021, when El Salvador adopted Bitcoin as the legal tender, the IMF objected to the development. Additionally, the agency pushed the country to abandon Bitcoin and embrace traditional finance. The regulators insisted El Salvador strengthen its regulations, which they reiterated later in January 2022. Recently, in August 2024, the agency reaffirmed its position on El Salvador’s Bitcoin policies. However, they acknowledged that many of the risks associated with Bitcoin adoption have not materialized.
HBO Documentary Claims to Reveal Bitcoin’s Satoshi NakamotoEl Salvador’s Bitcoin Initiatives
Since adopting Bitcoin as a legal tender, El Salvador has been well-known for its endorsement of Bitcoin. President Nayib Bukele has repeatedly shared his vision of turning the country into a Bitcoin hub. The Central American country has taken several pivotal steps to bolster Bitcoin’s growth in the country.
In a recent development, El Salvador announced a strategic Bitcoin training program. The program aims to educate 80,000 public servants on Bitcoin. The virtual session provides Bitcoin training and certifications to government employees.
The country’s historic Bitcoin City project is yet another example of El Salvador’s Bitcoin-focused innovations. It is a futuristic smart city project that leverages geothermal energy for Bitcoin mining and offers tax-free incentives.
