A The International Monetary Fund (IMF) has repeatedly called on El Salvador to moderate its Bitcoin policy and review its cryptocurrency regulatory framework. Julie Kozack, director of the IMF’s communications department, in an October 3 he said at a press conferencethat the agency’s staff is working closely with the Salvadoran government. Their aim is to finalize a new IMF-backed program to stabilize the economy, implement adjustments and support growth-promoting reforms. The IMF’s communications director highlighted that managing the risks associated with Bitcoin is central to these negotiations.
This is not the first time that Salvador has received criticism from the International Monetary Fund
„Regarding bitcoin details, we proposed narrowing the scope of the bitcoin law. In addition, strengthen the regulatory framework and oversight of the bitcoin ecosystem and limit public sector exposure to bitcoin“. This was stated by Kozack, so it can be seen that the IMF is still particularly disturbed by Salvador’s Bitcoin policy. The IMF highlighted that Salvador’s 2025 budget proposal is a positive step towards strengthening public finances. At the same time, they also emphasized that the plans must be implemented.
The IMF has previously raised concerns about Salvador’s Bitcoin policy. Just after the country made Bitcoin legal tender in September 2021, the IMF advised them to reconsider the decision. At the same time, he warned about the volatility risks of Bitcoin and the consumer protection gaps in the crypto sector. At that time, they also formulated a threat, emphasizing that if they do not change the Bitcoin policy, it will be much more difficult for the country to receive IMF support. And although Salvador has pointed out several times that they will not deviate from the set plans, the IMF is not giving up and is trying. But as long as Nayib Bukele is in power in the Central American country, the Monetary Fund will probably not kick the ball.
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