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El Salvador and the softer approach of the IMF towards Bitcoin and crypto El Salvador seems to be making even the International Monetary Fund (IMF) “soften” towards Bitcoin and the crypto market.  In practice, the country with Bitcoin as legal tender since September 2021, is increasingly becoming a pioneer in various processes against the hegemony of the dollar.  To testify to this is the report of the IMF which states that there have been progress in the discussion with the government of El Salvador. Here is how the document quotes: “Progress has been made in the negotiations for the definition of a program supported by the Fund, focused on policies aimed at strengthening public finances, increasing bank reserves, improving governance and transparency, and mitigating risks arising from Bitcoin.” Not only that, regarding Bitcoin, the FMI then said: “Regarding Bitcoin, although many of the risks have not yet materialized, the need for further efforts to improve transparency and mitigate potential risks to fiscal and financial stability arising from the Bitcoin project has been recognized. Further discussions are needed in this and other key areas.” Despite such statements do not speak of total acceptance of the queen of crypto, they do show a more “soft” approach from the IMF on the matter, compared to what was done in the past.  El Salvador and the evolution of the IMF’s approach regarding Bitcoin and crypto While El Salvador adopted Bitcoin as the country’s legal currency in September 2021, the IMF initially reacted drastically.  And in fact, already in January 2022, the IMF had explicitly requested the removal of BTC and had advised the country to invest in infrastructure and social spending.  However, the advice was not even listened to and the government of Nayib Bukele has always strengthened its position on Bitcoin.  Not only…

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Filed under: News - @ August 19, 2024 9:19 am