Bitcoin

During an Oct. 3 press conference, the International Monetary Fund (IMF) renewed calls pressuring El Salvador to scale back its Bitcoin (<a data-ct-non-breakable="null" href="https://cointelegraph.com/bitcoin-price" rel="null" target="null" text="null" title="null">BTC</a>) policies and overhaul its regulatory framework surrounding the digital asset.
Julie Kozack, director of the IMF’s communications department, did not specify the exact details behind the proposed regulatory shift but instead provided this statement:
<blockquote>
 "What we have recommended is a narrowing of the scope of the Bitcoin Law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin."
</blockquote>
Since El Salvador legalized Bitcoin as a form of legal tender in 2021, the IMF has pressured the Central American country to step away from Bitcoin and embrace traditional financial infrastructure.
<figure>
 <img alt="IMF, Fiat Money, National Debt, El Salvador" src="https://s3.cointelegraph.com/uploads/2024-10/01925380-534d-7574-9c0f-268b751566c0" title="">
 <figcaption style="text-align: center;">
 El Salvador’s annual GDP and inflation rates, 1980–2025. Source: IMF
 </figcaption>
</figure>
In August 2024, the IMF voiced the same demands but admitted that many of the purported risks of Bitcoin adoption “have not yet materialized.”
Related: <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-adoption-national-economies-currency" rel="null" target="null" text="null" title="null">Country-wide Bitcoin adoption a mixed bag for national economies</a>
<h2 id="imf-openly-hostile-to-bitcoin-and-crypto">IMF openly hostile to Bitcoin and crypto</h2>
The IMF’s hostility toward Bitcoin is no secret. As fiat currencies continue to devalue globally, individuals and, to a lesser extent, nation-states are slowly turning away from the debt-based fiat standard toward the sound monetary principles inherent in Bitcoin.
In 2023, the IMF provided technical consulting to help Andorra <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-guides-andorra-monitor-bitcoin-transactions" rel="null" target="null" text="null" title="null">record and monitor Bitcoin transactions</a>. Later, in March 2024, it suggested Pakistan institute a <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-pakistan-tax-crypto-capital-gains" rel="null" target="null" text="null" title="null">capital gains tax on crypto</a> to qualify for a $3 billion loan.
More recently, IMF executives floated the idea of <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-crypto-miner-ai-electricity-tax-carbon-emissions" rel="null" target="null" text="null" title="null">taxing energy used for crypto mining</a> to reduce carbon emissions. This added tax could drive up energy costs for miners by 85%, a potentially devastating blow for an industry already struggling with post-halving economics and <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/bitcoin-network-hashrate-reaches-new-all-time-high" rel="null" target="null" text="null" title="null">increased mining difficulty</a>.
<h3 id="imf-pushes-central-bank-digital-currencies">IMF pushes central bank digital currencies</h3>
While the IMF continues to oppose Bitcoin and non-state-controlled cryptocurrencies, it is simultaneously pushing for central bank digital currencies (CBDC) globally.
This past September, the IMF released its <a data-ct-non-breakable="null" href="https://cointelegraph.com/news/imf-guide-boost-cbdc-adoption-through-redi-framework" rel="null" target="null" text="null" title="null">”REDI” framework for CBDC development</a>. The acronym stands for regulation, education, design, and incentives — geared toward helping central banks make CBDC adoption more palatable to prospective populations.
Magazine: <a data-ct-non-breakable="null" href="https://cointelegraph.com/magazine/cuba-bitcoin-revolution-adoption-embargo/" rel="null" target="null" text="null" title="null">The truth behind Cuba’s Bitcoin revolution: An on-the-ground report</a>

IMF pressures El Salvador to overhaul Bitcoin regulations

Table of Contents

Cointelegraph

Other articles published on Oct 3, 2024

Crypto AI:CON Gathers the Brightest AI and Blockchain Minds in Lisbon

Metaplanet’s Bitcoin Reserves Reach 530.72 BTC Following Recent Options Transaction

Shiba Inu (SHIB) Finally Showing Bullish Signs, Grayscale XRP Trust Could Pave the Way for an ETF...

Movement Labs Updates

Qubetics Takes Centre Stage as Hot Crypto Presale, Ethereum and Avalanche Get Ready for October

Bitcoin price dip below $60K sparks most exchange buying since 2022

Join our free newsletter for daily crypto updates!