IMF Calls on El Salvador to Reconsider Bitcoin Regulations

On October 3, the International Monetary Fund (IMF) once again pressured El Salvador to reconsider its Bitcoin policy and reform the regulatory framework around digital assets.

Julie Kozack, director of the IMF’s communications department shared, “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.” IMF stands adamant on its attempt to strike out Bitcoin even as El Salvador’s GDP has gone up 10%+ since adopting Bitcoin. The country’s tourism too, has been up 95% in 2023, thanks to its friendly Bitcoin adoption.

IMF Continues to Hold El Salvador Hostage Over #Bitcoin, Despite:

>GDP up 10%+ since adopting #Bitcoin, consistently outpacing regional peers
>Murder rate down by 95%
>Tourism up 95% in 2023 alone@nayibbukele, your vision is driving a remarkable transformation!

Stand firm! pic.twitter.com/bk0kTkNHfQ

— matthew sigel, recovering CFA (@matthew_sigel) October 3, 2024

There have been many instances when the IMF has called on the El Salvador to step away from Bitcoin and embrace traditional financial infrastructure since the country legalized Bitcoin as a form of legal tender back in 2021.

With US dollars and other fiats losing value, the IMF has been pushing hard for crypto regulations around the world. On the other hand, the IMF is also stressing for central bank digital currencies (CBDC) globally, and also released a framework for regulation, education, design, and incentives on CBDCs.

In a recent attempt to antagonize the idea of crypto regulations for countries, the IMF had recently suggested Pakistan to come up with a capital gains tax on crypto to qualify for a $3 billion loan. Another instance, where IMF’s crypto hostility was not at all surprising was when its executives suggested taxing energy used for crypto mining to reduce carbon emissions.

Also Read: Ohio Senator Introduces Bill To Allow Bitcoin Tax Payments