IMF to Help El Salvador Reduce Bitcoin-related Risks

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The IMF has issued a statement following their recent visit to El Salvador, focused on supporting the country’s medium-term growth and addressing risks associated with Bitcoin.

According to the statement released on Tuesday, progress has been made in negotiations for a Fund-supported program that will aim to strengthen public finances, increase bank reserves, improve governance and transparency, and mitigate potential risks from the use of Bitcoin.

The agency highlighted that discussions have taken place with El Salvador’s authorities on managing the country’s public debt, including proposals on how to handle Bitcoin as a legal tender and the government’s holdings of approximately 5,750 BTC (equivalent to $328.6 million at current prices).