-
IMF spokesperson Julie Kozack requires lowering public sector publicity to bitcoin.
-
The group considers the 2025 price range proposal to be “a good step.”
When the whole lot appeared to point that the International Monetary Fund (IMF) and Nayib Bukele’s authorities had ironed out variations in relation to the adoption of bitcoin (BTC) in El Salvador, there’s data that appears to point the reverse.
This is obvious from the statements made by the group’s Director of Communications, Julie Kozack, who in a press convention on October 3 admitted that the digital foreign money stays “key” in the negotiations who’re shifting ahead to signal an settlement with the Central American nation.
“What we have recommended is to limit the scope of the bitcoin law, strengthen the regulatory framework and oversight of the ecosystem, and limit the public sector’s exposure to bitcoin,” Kozack mentioned, with out providing particulars about the implications of these modifications that they advocate for Salvadoran regulation.
However, contemplating the observations made by the IMF final August, when it introduced that they’d reached preliminary agreements, it’s recognized that the Fund’s concern stays that the adoption of BTC turns into overcrowded in El Salvador, a panorama that they describe as “very dangerous.”
The foremost questions are raised about articles 1,7 and 8 of the Law, which place bitcoin as authorized tender, promote its use as a method of cost and name on the State to favor transactions with BTC.
However, as the ranges of cryptocurrency adoption amongst Salvadorans have thus far been very low, the IMF considers that “many of the risks have not yet materialized.” Despite this, he insists that More efforts are wanted to “mitigate fiscal and financial stability dangers.” that the bitcoin challenge proposes.
In that sense – regardless of the progress in the talks – the IMF signifies that extra discussions are vital on the challenge of bitcoin. Hence your request that its adoption be restrictedparticularly in the public sector.
Bukele makes modifications, however doesn’t contact the Bitcoin Law
Within the framework of the progress of negotiations with the IMF, the Bukele authorities has thought of making modifications to the regulation of cryptocurrencies, however with out touching the Bitcoin Law.
The Legislative Assembly is at present debating a reform to the Digital Asset Issuance Law, via which it establishes obligatory registration for service suppliers (exchanges, custodians and cost processors), the implementation of KYC requirements (know your buyer), and cybersecurity measures. The goal is to behave in accordance with the suggestions made by the Financial Action Task Force (FATF).
El Salvador thus seeks to adjust to some of the Fund’s requests. As the Minister of Finance, Jerson Posada, declared a number of days in the past, they’re attempting to implement some of the measures that the group considered to signal agreements. This consists of the presentation of a self-financing price range for 2025, a measure that Julie Kozack referred to as “a good step to strengthen public finances, which needs strong implementation.”
As reported by CriptoNoticias, the Minister of Finance assured that the negotiations with the IMF had been properly underway “and almost on the verge of being closed,” though He didn’t discuss with the variations that live on in relation to bitcoin.
The objective of El Salvador’s negotiations is to succeed in an settlement to implement a brand new program supported by the IMF, which is able to grant the nation an inflow of USD 1.3 billion that assist financial stabilization and to make macroeconomic changes. On this matter, Kozack concluded that to realize this “it will be necessary to make a series of reforms that promote growth.”
