IMF Pressures El Salvador Again
According to Cointelegraph, the International Monetary Fund (IMF) once again called on El Salvador to reduce its Bitcoin policy and comprehensively reform its regulatory framework for digital assets during a press conference on October 3.
IMF Communications Director Julie Kozack did not specify the details of the proposed regulatory reforms but provided the following statement:
"What we are recommending is to narrow the scope of the Bitcoin Law, strengthen the regulatory framework and oversight of the Bitcoin ecosystem, and limit the public sector's exposure to Bitcoin-related risks."
Since El Salvador legalized Bitcoin as legal tender in 2021, the IMF has been pressuring the country to abandon Bitcoin and return to the traditional financial system.
In August 2024, the IMF made similar demands again but also acknowledged that many of the risks associated with Bitcoin adoption "have not yet fully materialized."
IMF's Hostile Attitude Towards Bitcoin and Cryptocurrencies
The IMF's hostile stance towards Bitcoin is well-known. As global fiat currencies continue to depreciate, some individuals and a few countries are gradually moving away from debt-based fiat currencies and turning to the sound monetary principles that Bitcoin offers.
In 2023, the IMF provided technical advice to Andorra to help the country record and monitor Bitcoin transactions. Then in March 2024, the IMF suggested that Pakistan impose capital gains taxes on cryptocurrencies to qualify for its $3 billion bailout loan.
Recently, IMF officials proposed taxing the energy consumed by crypto mining to reduce carbon emissions. Such additional taxes could increase miners' energy costs by 85%, which could be a heavy blow to an industry already facing the pressures of halving economies and rising mining difficulty.
IMF Promotes Central Bank Digital Currencies
On one hand, the IMF opposes Bitcoin and other non-state-controlled cryptocurrencies, while on the other hand, it actively promotes the development of Central Bank Digital Currencies (CBDCs) globally.
In September of this year, the IMF launched its CBDC development framework "REDI," which stands for "Regulation, Education, Design, and Incentives," aimed at assisting central banks in various countries to better promote CBDCs to encourage public adoption.