As the cryptocurrency industry expands, with more countries starting to accept Bitcoin (BTC) and other digital assets as viable alternatives to traditional money, the International Monetary Fund (IMF) and many global financial regulators are trying to control as much of this adoption as possible.
IMF has entered into talks with El Salvadoran authorities “on the critical issues that were emphasized by our Executive Board in January,” confirmed the organization’s spokesman Gerry Rice at a press conference, reported by elsalvador.com on May 20.
“It is part of the discussions that are ongoing, including the progress of the authorities in the collection of statistics on the use of Bitcoin and other information related to the adoption of Bitcoin as legal tender in El Salvador. Therefore, we provide technical assistance on this topic, the compilation of the use of Bitcoin,” he explained.
Rice has also said that the debates were being held “on the fight against money laundering, fiscal transparency, accountability in the use of public funds, strengthening the anti-corruption framework in accordance with international standards, and a variety of other issues.”
Contrary to the harsh moves in the past, the IMF still regularly holds conversations with representatives of the El Salvador government. They held debates on the fight against money laundering, fiscal transparency, accountability in the use of public funds, strengthening the anti-corruption framework in line with international standards, and many other issues.
However, as of now, it has not revealed how much technical assistance the IMF will provide in quantifying the use of Bitcoin and cryptocurrencies in the country.
Notably, El Salvador was the first country in the world to legalize Bitcoin in September 2021. Its president, Nayib Bukele, is said to have purchased 2,301 Bitcoin. In late April 2022, this country was followed by the Central African Republic. However, with the crypto market’s recent historic LUNA-UST crash, Bukele’s Bitcoin “bottom-fishing” investments are said to be losing money.
Meanwhile, local El Salvadorean media stated that the government’s talks with the IMF could result in a $1.3 billion loan package to help it organize its finances in the face of rising country risk and lower ratings from international risk agencies.
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