El Salvador is doubling down on its Bitcoin movement despite continued pressure from the International Monetary Fund (IMF) regarding the country’s use of the digital asset.
On October 4, Juan Carlos Reyes, chairman of the National Commission for Digital Assets (CNAD), announced that the Central American country’s legislators had passed “important amendments to the CNAD law.”
Bitcoin movement
He said these changes will give CNAD the power to regulate bitcoin companies in the country.
Furthermore, CNAD will now become the main regulatory body overseeing the domestic Bitcoin industry. It will also introduce a risk-based regulatory framework to position El Salvador as a leader in global digital asset adoption and regulation.
Reyes added:
“Our team combines regulatory knowledge with real-world Bitcoin experience to ensure a balanced and effective approach.”
Reyes also said more information about the proposed regulatory framework will be shared in the coming weeks.
In parallel, El Salvador’s Presidential Office’s National Bitcoin Authority (ONBTC) said the country is building a new capital market based on the pioneering digital asset.
According to ONBTC:
“Only in Bitcoin do individuals have self-control of their wealth and property. Capital is not formed on a chain designed for speed rather than sovereignty.”
IMF recommendations
These moves came after the IMF again expressed concerns about El Salvador’s efforts in Bitcoin.
IMF communications director Julie Kozak said the country’s position on bitcoin remains a subject of debate. she said:
“[The IMF]recommends narrowing the scope of Bitcoin law, strengthening the regulatory framework and oversight of the Bitcoin ecosystem, and limiting public sector exposure to Bitcoin.”
Interestingly, this recommendation follows the IMF’s previous recognition that some risks associated with El Salvador’s involvement in Bitcoin have not yet materialized.
Despite the IMF’s warning, many in the crypto community have advised the country to ignore this recommendation. Matthew Siegel, head of digital assets at VanEck, accused the IMF of holding El Salvador “hostage” due to its pro-Bitcoin stance, despite the country’s economic and social progress.
Instead, Siegel encouraged President Nayib Boukre to “remain resolute,” saying his “vision is driving remarkable change.”
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