IMF pressures El Salvador to overhaul Bitcoin regulations
During an Oct. 3 press conference, the International Monetary Fund (IMF) renewed calls pressuring El Salvador to scale back its Bitcoin ( BTC ) policies and overhaul the regulatory framework surrounding the digital asset.
Julie Kozack, the director of the IMF communications department, did not specify the exact details behind the proposed regulatory shift but instead provided this statement:
"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."
Since El Salvador legalized Bitcoin as a form of legal tender in 2021, the IMF has pressured the South American country to step away from Bitcoin and embrace traditional financial infrastructure.
El Salvador annual GDP and inflation rates 1980-2025. Source: International Monetary Fund
In August 2024, the IMF voiced the same demands but admitted that many of the purported risks of Bitcoin adoption “have not yet materialized.”
Related: Country-wide Bitcoin adoption a mixed bag for national economies
IMF openly hostile to Bitcoin and crypto
The IMF’s hostility toward Bitcoin is no secret. As the value of fiat currencies continues to devalue globally, individuals and, to a lesser extent, nation-states are slowly turning away from the debt-based fiat standard toward the sound monetary principles inherent in Bitcoin.
In 2023, the IMF provided technical consulting to help Andorra record and monitor Bitcoin transactions . Later, in March 2024, the supranational organization suggested that Pakistan institute a capital gains tax on crypto to qualify for a $3 billion loan.
More recently, IMF executives floated the idea of taxing energy used for crypto mining to reduce carbon emissions. This added tax could drive up energy costs for miners by 85%, a potentially devastating blow for an industry already struggling with post-halving economics and increased mining difficulty .
IMF pushes central bank digital currencies
While the IMF continues to oppose Bitcoin and non-state-controlled cryptocurrencies, it is simultaneously pushing central bank digital currencies (CBDC) globally.
This past September, the IMF released the REDI framework for CBDC development . The acronym stands for regulation, education, design, and incentives — initiatives geared toward helping central banks make CBDC adoption more palatable to prospective populations.
Magazine: The truth behind Cuba’s Bitcoin revolution: An on-the-ground report
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
What Are The Key Support And Resistance Levels For Ripple (XRP) During The Market Decline? Analysis Company Reveals
Cryptocurrency analytics firm MakroVision has taken a look at the XRP price situation during the market decline.
In this Altcoin, Developers Say “There is Manipulation Because We Allocate Too Few Tokens to Ourselves”, Demand More Tokens from the Community
Developers in one altcoin project attributed price volatility and manipulation to the fact that they had too few tokens.
400 Million XRP Worth $1.13 Billion Unlocked: But There’s One Thing to Know
Although 400 million XRP have been unlocked, according to Onchain data, this is a planned unlock and most coins will not be sold.
Are the Applications of ETF Applicants DOGE, XRP, SOL, LTC, BONK, MELANIA Altcoins Likely to be Approved? CEO Evaluated
Is there a possibility that the ETF steps that have been put forward recently for various cryptocurrencies, including memecoins, will come true?