IMF Presses El Salvador to Roll Back Bitcoin Policy and Reassess Regulation

The International Monetary Fund (IMF) has again called on El Salvador to roll back its Bitcoin policy and revise its regulatory framework for digital assets.
On the 3rd (local time), Julie Kozak, Director of Communications at the IMF
"Our recommendation is to narrow the scope of the Bitcoin Act and to restrict the use of Bitcoin," Kozack said in a press statement.
"The goal is to strengthen the regulatory framework and oversight of the ecosystem and limit the public sector's exposure to Bitcoin," he said, without providing exact details of the proposed regulatory changes.
According to the IMF, El Salvador is experiencing 3% annual GDP growth and has about $144 million in outstanding loans.
Since El Salvador legalized Bitcoin as legal tender in 2021, the IMF has urged El Salvador to abandon Bitcoin and move away from traditional finance.
The IMF has been pushing for the adoption of bitcoin infrastructure since 2016. In August last year, the IMF raised the same demand, but acknowledged that many of the risks associated with bitcoin adoption have yet to be realized.
The IMF's hostility towards Bitcoin is already well known. With fiat currencies losing value around the world, individuals and some countries are moving away from debt-based fiat currency systems and towards Bitcoin.
We are moving towards the principles of sound currency that the Inn has.