IMF Urges El Salvador to Reassess Bitcoin as Legal Tender Amid Economic Concerns

The International Monetary Fund (IMF) has some important advice for El Salvador. They’re suggesting that the country rethink its rules on Bitcoin (BTC) as an official currency.

During a recent press briefing, IMF spokesperson Julie Kozack shared that the organization is actively working with El Salvador. Their goal? To boost productivity and improve economic governance. This includes tackling challenges that come with using Bitcoin.

Kozack said, “Addressing risks arising from Bitcoin is a key element of these discussions. Our aim is to support a credible and well-structured policy package designed by the authorities.”

She emphasized that the IMF wants El Salvador to reconsider its approach to Bitcoin, especially when it comes to how much the public sector is involved with it.

“Regarding the specifics of Bitcoin, we recommended narrowing the scope of the Bitcoin law. We also suggest strengthening the regulatory framework and oversight of the Bitcoin ecosystem, while limiting public sector exposure to Bitcoin,” she explained.

It’s worth noting that El Salvador made headlines in 2021 by becoming the first country to adopt Bitcoin as legal tender. Earlier this year, President Nayib Bukele announced that the country plans to keep acquiring one BTC each day.