At a press conference on October 3, the International Monetary Fund (IMF) renewed its calls pressuring El Salvador to reduce its Bitcoin. 
BTCUSD policies and overhaul its regulatory framework surrounding digital assets.
Julie Kozack, director of the IMF’s communications department, did not specify the exact details of the proposed regulatory change, but instead provided this statement:
“What we recommended was to narrow the scope of the Bitcoin law, strengthen the regulatory framework and oversight of the Bitcoin ecosystem, and limit public sector exposure to Bitcoin.”
Since El Salvador legalized Bitcoin as a form of legal tender in 2021, the IMF has pressured the Central American country to move away from Bitcoin and embrace traditional financial infrastructure.
In August 2024, the IMF made the same demands, but admitted that many of the purported risks of Bitcoin adoption “have not yet materialized.”
IMF attitude towards Bitcoin and crypto
The IMF has expressed its concerns regarding Bitcoin. As some fiat currencies experience devaluation, some individuals and a few nation states have begun to explore alternatives, including Bitcoin, which is often seen as offering a different monetary framework than traditional fiat systems.
In 2023, the IMF provided technical advice to help Andorra record and monitor Bitcoin transactions. Later, in March 2024, he suggested Pakistan to introduce a capital gains tax on crypto to qualify for a $3 billion loan.
More recently, IMF leaders floated the idea of taxing energy used for cryptocurrency mining to reduce carbon emissions. This additional tax could increase energy costs for miners by 85%, a potentially devastating blow to an industry already struggling with a halved economy and increased mining difficulties.
IMF encourages central bank digital currencies
As the IMF continues to oppose Bitcoin and non-state-controlled cryptocurrencies, it is simultaneously pushing for central bank digital currencies (CBDCs) globally.
Last September, the IMF published its “REDI” framework for the development of CBDCs. The acronym stands for regulation, education, design and incentives – aimed at helping central banks make the adoption of CBDCs more acceptable to potential populations.
