Bitcoin Warning from the International Monetary Fund (IMF) to El Salvador and Nayib Bukele! Here are the Details

The International Monetary Fund (IMF) once again criticized El Salvador for its regulatory framework and Bitcoin He called for strengthening oversight of the ecosystem and recommended that the country narrow the scope of its Bitcoin law.

IMF Urges El Salvador to Strengthen Bitcoin Regulations and Oversight

At a press conference, IMF spokeswoman Julie Kozack emphasized that El Salvador should limit its public sector exposure to Bitcoin, Reuters reported.

This isn’t the first time the IMF has raised concerns about El Salvador’s Bitcoin policy.

In August, the IMF issued a similar warning, saying that while many of the risks associated with the country accepting Bitcoin as legal tender have not yet materialized, more efforts are needed to increase transparency and address potential fiscal and financial stability risks.

The IMF also called for additional discussions on key areas related to Bitcoin custody.

The IMF’s concerns date back to November 2021, just two months after El Salvador became the first country in the world to establish bitcoin as legal tender.

At the time, the IMF recommended that bitcoin should not be used as a legal currency and called for stronger regulation and supervision of the cryptocurrency ecosystem; He repeated this recommendation in January 2022.

Since accepting Bitcoin in September 2021, El Salvador has accumulated approximately 5,892 BTC, worth approximately $345 million at current prices.

Despite this, the country’s Bitcoin project has faced difficulties. President who spearheaded the initiative Nayib Bukelerecently acknowledged that while the overall impact of the policy has been a “net positive,” the level of Bitcoin adoption has not met its expectations.

*This is not investment advice.