The International Monetary Fund (IMF) is collaborating with El Salvador to address the financial risks associated with the adoption of Bitcoin.
The goal is to develop a reliable plan to stabilize and grow the economy while managing economic affairs, with Bitcoin as legal tender.
Following discussions led by Rafael Espinosa, the latest news released by the IMF emphasizes the importance of improving public finances, increasing bank reserves, and enhancing financial transparency.
The organization highlighted that El Salvador needs to optimize public spending on services and infrastructure to increase the fiscal balance as a percentage of GDP by 3.5% within three years.
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The United States may establish a tax-free zone for Bitcoin transactions.
Both parties acknowledge the potential risks of Bitcoin, including concerns over fiscal stability and transparency. They agree that additional measures are needed to address issues such as corruption and money laundering.
Under the leadership of President Nayib Bukele, the Salvadoran government began using Bitcoin as legal tender in September 2021. Despite earlier warnings from the IMF, the country remains committed to its Bitcoin strategy. It continues to purchase Bitcoin daily through a “dollar-cost averaging” method and currently holds approximately 334 Bitcoins, valued at around $20 million.
