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IMF Urges El Salvador to Scale Back Bitcoin Adoption

The International Monetary Fund is sounding alarms around President Bukele's BTC push.

Oct 4, 2024 • 1 min read

The IMF has renewed its call for El Salvador to reduce its exposure to bitcoin as part of broader economic discussions.

What's the scoop?

Ongoing Negotiations: Talks between the IMF and Salvadoran authorities focus on economic stabilization and managing risks from Bitcoin.
Bitcoin Risks: The IMF highlighted the need for stronger regulatory frameworks around Bitcoin to mitigate fiscal and financial stability risks.
Limited Adoption: While Bitcoin adoption in El Salvador has been limited, President Bukele still views it as a “net positive” for the country.

Bankless Take:

The IMF’s push to narrow El Salvador’s Bitcoin law continues the tension between the organization, which has been wary of BTC’s integration for years now, and the crypto-friendly nation. Despite limited adoption and the IMF’s concerns, Bitcoin remains central to President Bukele’s plans. How El Salvador navigates this pressure and any future responses could set a precedent for other countries looking to embrace digital currencies while balancing global financial relations.

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