October 4, 2024 – The International Monetary Fund (IMF) has reiterated its call for El Salvador to reconsider its Bitcoin policy. In a press release dated October 3, the IMF urged the Central American nation to reform its regulatory framework concerning digital assets.
Key Recommendations:
- Narrowing Bitcoin Laws: The IMF suggests that El Salvador should limit the scope of its existing Bitcoin legislation to better regulate the cryptocurrency market.
- Strengthening Regulatory Oversight: The organization emphasizes the need for enhanced regulatory frameworks and oversight mechanisms within the Bitcoin ecosystem to ensure stability and security.
- Limiting Public Sector Exposure: The IMF advises that the Salvadoran government should reduce its exposure to Bitcoin in order to mitigate potential risks to its economy.
This statement comes as El Salvador continues to face challenges related to its adoption of Bitcoin as legal tender, including economic instability and concerns over financial regulation. The IMF’s recommendations aim to guide El Salvador in navigating the complexities of cryptocurrency integration into its financial system.
