The International Monetary Fund again urged El Salvador to relapse Bitcoin law and strengthen the digital asset regulatory framework.
The IMF again persuaded pro-Bitcoin El Salvador to reconsider its Bitcoin adoption and loosen its widespread use of the asset in the country. The global financial organization made the latest call in a press release on Thursday.
IMF Tries for the Ninety-Ninth Time
Since El Salvador adopted Bitcoin as a legal tender in 2021, the IMF has been critical of the move. On several occasions, the agency has warned the Central American country of the adverse fiscal implications the adoption will pose on it.
Thursday’s call was no different, as the IMF urged El Salvador to limit the use of Bitcoin in the country. Julie Kozack, the IMF’s director of communications, revealed that the agency discussed the risks of increased exposure to Bitcoin with El Salvador.
Kozack stated that the discussion focused on relapsing the scope of the Bitcoin law, tightening the regulatory framework, and curbing the public sector’s exposure to the premier asset.
Notably, the IMF used a similar playbook for El Salvador in August. However, it noted that the risks associated with the country’s exposure are yet to materialize.
It bears mentioning that El Salvador holds 5,892 BTC, worth $362 million. The Central American country pledged to acquire one bitcoin per day on March 16 and is currently on a streak exceeding 200 days.
El Salvador Reinforces Bitcoin Adoption
Despite the Thursday discussion, El Salvador has further increased exposure to Bitcoin. Juan Carlos Reyes, the president of the National Commission on Digital Assets (CNAD), announced that El Salvador and digital assets have attained a significant milestone today.
In a tweet, Reyes noted that the National Assembly has enacted a law allowing the CNAD to regulate Bitcoin companies in El Salvador. The president stated that the latest development further strengthens El Salvador’s position as a global leader in digital asset adoption.
According to Reyes, the new law will allow the CNAD to implement a well-suited regulatory framework enabling digital asset companies in El Salvador to thrive. It bears mentioning that the Central American country is the first state to make Bitcoin its legal tender.
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