Hi frens.
Okay, so we have the International Monetary Fund (IMF) dictating El Salvador about scaling back its policies for Bitcoin and overhauling its regulatory framework for crypto.
Director of the IMF communications department, Julie Kozack stated in a press conference on Oct 3 that staff of the IMF are working closely with the Salvadorian officials. Their aim is to finalize a new program backed by IMR to stabilize the economy and other things.
According to Julie, the central thing to these talks is tackling the risks connected with the leading crypto Bitcoin.
The agency has raised concerns about the country's policies regarding bitcoin. IMF adviced El Salvador about reconsidering their decision after the country made Bitcoin a legal tender back in 2021 warning of financial stability because of the token volatility and lack of consumer protections in crypto transactions.
By Aug 2024, while the worst risks hadn't happened, El Salvador was still urged by the IMF to improve transparency and strengthen manage of risks around Bitcoin activities.
According to IMF:
“There is joint recognition that further efforts are needed to enhance transparency and mitigate potential fiscal and financial stability risks from the Bitcoin project,”.
Thoughts?
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