IMF pressures El Salvador to overhaul Bitcoin regulations
2024-10-04

During an Oct. 3 press conference, the International Monetary Fund (IMF) renewed calls pressuring El Salvador to scale back its Bitcoin BTCUSD policies and overhaul the regulatory framework surrounding the digital asset.
Julie Kozack, the director of the IMF communications department, did not specify the exact details behind the proposed regulatory shift but instead provided this statement:
Since El Salvador legalized Bitcoin as a form of legal tender in 2021, the IMF has pressured the South American country to step away from Bitcoin and embrace traditional financial infrastructure.
In August 2024, the IMF voiced the same demands but admitted that many of the purported risks of Bitcoin adoption “have not yet materialized.”
IMF openly hostile to Bitcoin and crypto
The IMF’s hostility toward Bitcoin is no secret. As the value of fiat currencies continues to devalue globally, individuals and, to a lesser extent, nation-states are slowly turning away from the debt-based fiat standard toward the sound monetary principles inherent in Bitcoin.
In 2023, the IMF provided technical consulting to help Andorra record and monitor Bitcoin transactions. Later, in March 2024, the supranational organization suggested that Pakistan institute a capital gains tax on crypto to qualify for a $3 billion loan.
More recently, IMF executives floated the idea of taxing energy used for crypto mining to reduce carbon emissions. This added tax could drive up energy costs for miners by 85%, a potentially devastating blow for an industry already struggling with post-halving economics and increased mining difficulty.
IMF pushes central bank digital currencies
While the IMF continues to oppose Bitcoin and non-state-controlled cryptocurrencies, it is simultaneously pushing central bank digital currencies (CBDC) globally.
This past September, the IMF released the REDI framework for CBDC development. The acronym stands for regulation, education, design, and incentives — initiatives geared toward helping central banks make CBDC adoption more palatable to prospective populations.