IMF urges El salvador to strengthen Bitcoin oversight

The International Monetary Fund (IMF) urged El Salvador — the first country to adopt Bitcoin (BTC) as its legal tender — to strengthen its oversight over Bitcoin (BTC) transactions in the country.

According to an Oct. 3 Reuters report, IMF spokesperson Julie Kozack said during a recent press conference that El Salvador should limit its Bitcoin adoption. Furthermore, she also added that the nation should limit the public sector’s exposure to it.

El Salvador’s Bitcoin strategy

At the same time, Kozack admitted that El Salvador’s 2025 budget proposal is a good step toward strengthening the nation’s public finances. In mid-September,  President Nayib Bukele announced that the country’s 2025 budget will be debt-free.

Bukele further highlighted that no new debt would be issued even to cover expenses related to debt accumulated in the past. In mid-May, data released by the country’s “Bitcoin Office” showed that El Salvador could hold up to 5,750 BTC.

Since 2021, the nation has mined nearly 474 BTC by harnessing the geothermal power generated from the Tecapa volcano. More recent data shared by the Bitcoin Office shows that El Salvador holds 5,892 BTC — worth $362.42 million as of press time.

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