IMF advises El Salvador to limit public exposure to Bitcoin

The IMF wants El Salvador to limit “public sector exposure to Bitcoin,” following the financial agency's August announcement of “reductions.”[ing] “The Risks of Bitcoin”.

The International Monetary Fund (IMF) has recommended that El Salvador reduce the scope of Bitcoin legislation and limit the public's exposure to Bitcoin.

During a press conference, IMF spokeswoman Julie Kozak said:

“What we recommend is to narrow the scope of Bitcoin legislation, strengthen the regulatory framework and control of the Bitcoin ecosystem, and limit the public sector's exposure to Bitcoin.”

Kozak added that the IMF continues to engage with El Salvador and that “addressing the risks posed by bitcoin is a key part of these discussions.”

The Central American country is no stranger to the IMF's comments on its use of Bitcoin. Specifically, the issue will be back in 2021, when El Salvador makes bitcoin legal tender. Following its official adoption, the IMF issued a statement in November 2021 “recommended[ing] Narrowing the scope of Bitcoin law by “strengthening the regulation and control of the new payment system”.

This was called for again in January 2022 when the IMF advised El Salvador to reconsider the country's legal tender on Bitcoin.

More recently, the IMF released a statement in August that focused, among other things, on the importance of “minimizing risks from Bitcoin.” However, the financial agency said that “even if most of the threats are not realized, there is a common recognition that more efforts are needed to improve transparency. “In Bitcoin.

Still committed to Bitcoin.

Despite these comments from the IMF and the continued back and forth, El Salvador has not changed in its mission to see Bitcoin take off in the country.

However, as the government's adoption numbers increase, El Salvador's pro-Bitcoin President Naib Buquele knows more work needs to be done. In a recent interview with TIME magazine, Buckel acknowledged that Bitcoin's strategy for El Salvador has been a “net positive,” but that it hasn't seen the “broad adoption” they had hoped for.

Despite this, Buckele is committed to buying more bitcoins when the price drops. The country has pledged to use profits from Bitcoin Trusts to build 20 schools.