IMF Warns El Salvador not to Increase Bitcoin Exposure

International Monetary Fund (IMF) pleads with El Salvador not to increase Bitcoin exposure.
El Salvador adopted BTC as a legal tender in the year 2021.
IMF suggested that the government adhere to consistent budgetary constraints.

According to recent reports on the official Twitter account of CryptoNewsLand, the International Monetary Fund (IMF) is pleading with El Salvador to minimize its exposure to Bitcoin (BTC).

The Central American country adopted Bitcoin as a legal tender in 2021, becoming the world’s first nation to do so. Since then, the nation, headed by President Nayib Bukele, has gone on a buying frenzy of digital money. However, the El Salvador government has yet to learn how many Bitcoins it has purchased.

Nayib Bukele’s tweets say the Central American Nation has obtained around 2,381($106.4 million) Bitcoins. This figure does not include Nayib’s pledge, made in November on his official Twitter account, that he would begin acquiring BTC daily.

Furthermore, the IMF suggested that the government adhere to consistent budgetary constraints and good governance norms and that the safeguards provided by the Digital Asset Law be equivalent to those offered by traditional securities legislation.

Despite paper losses on its Bitcoin investments estimated to be at least 50%, the IMF reports that El Salvador’s economy has back to pre-pandemic levels. This is the case even though the pandemic struck El Salvador.

Just last month, El Salvador’s legislature passed the Digital Assets Issuance Bill, clearing the way for the country to begin issuing “volcano bonds” to finance its efforts to retire its foreign debt and develop its “Bitcoin City” financial hub.

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Munene Kelvin

Kelvin enjoys writing about cryptocurrency and blockchain. He started blogging in 2019 and switched to cryptocurrency in 2020. Kelvin is interested in technology, football, chess, and Defi. He wants decentralization to benefit everyone on the planet.