The International Monetary Fund (IMF) has once again urged El Salvador to refine its Bitcoin law and strengthen regulatory oversight of its Bitcoin ecosystem.
During a press conference, IMF spokesperson Julie Kozack emphasised that the IMF recommended reducing public sector exposure to Bitcoin.
“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 previously made a warning in August stating that “while many of the risks have not yet materialised, there is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project.” At that time, the IMF also said that “additional discussions in this and other key areas remain necessary.”
The IMF’s concerns about El Salvador’s Bitcoin adoption date back several years. In November 2021, the organisation advised against using Bitcoin as legal tender and called for stronger regulation, a recommendation it repeated in early 2022. El Salvador became the first country to adopt Bitcoin as legal tender in September 2021 and currently holds 5,892 BTC, valued at around $345 million.
President Nayib Bukele, who has championed Bitcoin’s use, recently stated that the project has had a “net positive” impact, although its adoption has been slower than expected. The IMF also commended Bukele’s 2025 budget plan, which aims to eliminate the country’s debt.