El Salvador is under more pressure from the International Monetary Fund (IMF) to change its Bitcoin rules and get a better handle on the digital asset market. On October 3, Julie Kozack, who is in charge of marketing for the IMF, talked to the press about the group’s ideas for changing El Salvador’s Bitcoin rules.
Kozack said that the IMF wants the Bitcoin Law to be narrower and for the Bitcoin community to have stricter rules. In addition, she said that government agencies should be limited in how they can use Bitcoin. However, she did not explain what changes she wanted to see.
In 2021, El Salvador made Bitcoin legal currency. Since then, the IMF has been telling the country to switch to regular banking systems. The IMF reiterated its position earlier in August 2024, stating that it continues to believe that many of the anticipated risks associated with Bitcoin have not yet developed.
Some people are looking at Bitcoin as an alternative to standard currencies that are losing value, which worries the IMF. A lot of people and countries are looking for other ways to make money while the IMF watches out for cryptocurrencies. In 2023, it assisted Andorra in establishing a system for tracking Bitcoin transactions. It told Pakistan in March 2024 that a capital gains tax on crypto trades would help them get a loan.
Also, the IMF recently said that bitcoin mining could use less carbon emissions if the energy it uses was charged. Miners are already having a hard time because the market is changing, and this could make things even worse.
