The International Monetary Fund (IMF) has suggested that El Salvador reduce its government backing for Bitcoin. This represents a more conciliatory stance compared to earlier attempts aimed at repealing the nation's Bitcoin law. Despite this, El Salvador's President Nayib Bukele appears steadfast in his commitment to Bitcoinization.
According to a recent report from Forbes, the IMF seems to be adopting a new tactic with El Salvador. Instead of insisting on the repeal of Bitcoin's status as legal tender, the IMF is urging the government to lessen its legal support for Bitcoin. Since Bukele declared Bitcoin legal tender in 2021, the IMF has been a vocal opponent of El Salvador's Bitcoin initiative.
As the situation develops, it will be interesting to see how El Salvador navigates the IMF's recommendations while maintaining its Bitcoin strategy. The balance between international pressure and national policy will be crucial for the future of Bitcoin in the country.
