El Salvador Doubles Down on Bitcoin Moves Despite Ongoing IMF Pressure

El Salvador has doubled down on its Bitcoin moves despite ongoing pressure from the International Monetary Fund (IMF) regarding the country's use of the digital asset.

El Salvador has doubled down on its Bitcoin (BTC) initiatives despite ongoing pressure from the International Monetary Fund (IMF) regarding the country’s use of the digital asset.

On Oct. 4, Juan Carlos Reyes, president of the National Commission on Digital Assets (CNAD), announced that El Salvador’s lawmakers had passed “important amendments to the CNAD law.”

According to Reyes, these changes now grant the CNAD the authority to regulate Bitcoin companies in the country.

Furthermore, the CNAD will now serve as the primary regulatory body overseeing El Salvador's Bitcoin industry, implementing a risk-based regulatory framework to position the nation as a global leader in digital asset adoption and regulation.

“Our team [will] combine regulatory knowledge with practical Bitcoin experience, ensuring a balanced and effective approach,” Reyes added.

He also mentioned that more information on the proposed regulatory framework will be shared in the coming weeks.

In a parallel development, the National Bitcoin Office (ONBTC) of the Office of the President of El Salvador stated that the country was building new capital markets on the bellwether digital asset.

“Only on bitcoin can an individual ever self-custody their wealth and property,” the ONBTC stated. “Capital will never form upon chains designed for velocity rather than sovereignty.”

These moves follow the IMF once again expressing concerns about El Salvador's Bitcoin initiatives.

Julie Kozack, director of the IMF Communications Department, stated that the country's stance on Bitcoin remained an ongoing topic of discussion.

“What [IMF] has recommended is a narrowing of the scope of the bitcoin law, strengthening the regulatory framework and oversight of the bitcoin ecosystem, and limiting the public sector exposure to bitcoin,” she said.

This recommendation notably follows the IMF’s earlier acknowledgment that some risks linked to El Salvador's Bitcoin involvement had not yet materialized.

Despite the IMF's caution, many in the crypto community have advised El Salvador to disregard this advice.

Mathew Sigel, head of digital assets at VanEck, accused the IMF of holding El Salvador “hostage” over its pro-Bitcoin stance despite the nation's economic and societal progress.

Instead, Sigel urged President Nayib Bukele to “stand firm” as his “vision is driving a remarkable transformation.”

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