The International Monetary Fund (IMF) has advised El Salvador to refine its bitcoin law, enhance regulatory oversight, and limit public sector exposure to the cryptocurrency. This recommendation was made by IMF spokesperson Julie Kozack during a press conference, as reported by Reuters.
The IMF has previously cautioned El Salvador about the potential risks associated with bitcoin, most recently in August, when it emphasized the need for greater transparency and risk mitigation. The history of IMF warnings to El Salvador dates back to November 2021, when it first expressed concerns about bitcoin being used as legal tender and advocated for strengthened regulation. El Salvador became the first country to adopt bitcoin as legal tender in September 2021 and currently holds 5892 BTC, valued at approximately $345 million. President Nayib Bukele has described the country's experience with bitcoin as 'net positive,' although adoption has been slower than anticipated.
The IMF has praised Bukele's 2025 budget, which aims to make the country debt-free.