The International Monetary Fund (IMF) remains critical of El Salvador’s Bitcoin experiment while continuing to work with the country.
According to Reuters, at a press conference on Thursday, IMF spokesman Julie Kozack stated that the IMF has suggested “limiting public sector exposure to Bitcoin”.
The IMF has been critical of El Salvador’s decision to adopt Bitcoin as legal tender since 2021, and these comments reflect their ongoing caution about the move.
El Salvador made headlines in September 2021 when it became the world’s first country to accept Bitcoin as legal cash. This approach, championed by President Nayib Bukele, has sparked controversy, with the IMF among the most vocal detractors.
The organization has repeatedly expressed worries about the decision’s possible macroeconomic, financial, and legal hazards, warning that Bitcoin’s volatility might disrupt the national economy.
However, it acknowledged in August that many of the hazards of the Bitcoin experiment “had not yet materialized.”
President Nayib Bukele has consistently dismissed concerns raised by institutions like the IMF and various politicians about El Salvador’s Bitcoin adoption. He’s taken to social media to mock these criticisms, sharing memes to downplay their grievances.
Despite the international skepticism, Bukele has remained committed to the project, though, in an August 2023 interview with TIME, he admitted that the experiment hadn’t fully met expectations.
In El Salvador, the Bitcoin law requires businesses to accept Bitcoin as payment if they have the technology to do so. The government has invested heavily in Bitcoin, and President Bukele has joked on Twitter about buying Bitcoin in casual situations, like “naked” or “while in the toilet.”
Even though the government gave citizens $30 of free Bitcoin through the Chivo wallet in 2021 to promote its use, many Salvadorans are still not interested in using Bitcoin for everyday transactions, as surveys show.
Also Read: Nayib ‘Chivo’ Bukele: The El Salvador President who loves Bitcoin
