IMF Pressures El Salvador Over Bitcoin Laws

The IMF demands changes to El Salvador's Bitcoin law during $1.4 billion credit negotiations.
IMF Pressures El Salvador Over Bitcoin Laws
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Key Takeaways

  • The IMF is demanding El Salvador alter its Bitcoin law amidst credit talks.
  • El Salvador has invested over $150 million in adding bitcoin to its reserves.
  • The country's Bitcoin adoption faces significant opposition from the IMF.

The International Monetary Fund (IMF) is pressing El Salvador to amend its Bitcoin law.

This comes as part of ongoing discussions tied to a $1.4 billion credit line.

El Salvador’s Bitcoin commitment

Despite the IMF’s concerns, El Salvador, under President Nayib Bukele, continues to support Bitcoin.

The country has invested heavily in Bitcoin, adding to its reserves and launching Bitcoin-focused educational initiatives.

El Salvador currently holds around 5,600 bitcoin.

IMF’s concerns vs. Bukele’s vision

Julie Kozack, IMF’s communications director, highlighted Bitcoin’s risks last Thursday.

She emphasized that Bitcoin lacks financial integrity and has stability issues.

However, President Bukele has remained steadfast, advocating for Bitcoin’s role in enhancing financial inclusion.

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