El Salvador in IMF talks to tackle Bitcoin risks
The IMF is concerned about the risks posed by Bitcoin and is urging a reduction in the scope of the existing Bitcoin law, alongside enhanced regulation and oversight of the digital currency ecosystem.
The International Monetary Fund (IMF) is holding talks with El Salvador to focus on strengthening reforms, particularly in light of the country’s use of Bitcoin. A key topic in the discussions involves addressing the risks posed by the digital currency, with the IMF calling for a narrowing of the Bitcoin law’s scope. Strengthening regulations and oversight of the Bitcoin ecosystem is seen as crucial.
The IMF has also recommended that El Salvador limit its public sector’s exposure to Bitcoin. Additionally, the country’s 2025 budget proposal has been praised by the IMF as a step towards improving public finances, though the organisation stressed the need for robust implementation to ensure its success.
