El Salvador has doubled down on its Bitcoin moves 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 lawmakers had passed “important changes to the CNAD law.”
Bitcoin moves
According to him, these changes give the CNAD the authority to regulate Bitcoin companies in the country.
Furthermore, the CNAD will now be the main regulatory body overseeing the country’s Bitcoin industry. It will also implement a risk-based regulatory framework to position El Salvador as a global leader in digital asset adoption and regulation.
Reyes added:
“Our team [will] combines regulatory knowledge with practical Bitcoin experience, ensuring a balanced and effective approach.”
Reyes also said more information on the proposed regulatory framework will be shared in the coming weeks.
In a parallel development is the National Bitcoin Office (ONBTC) of the office of the President of El Salvador declared that the country was building new capital markets based on digital assets.
According to ONBTC:
“Only with Bitcoin can an individual ever manage their own wealth and property. Capital will never form on chains designed for speed rather than sovereignty.”
IMF recommendation
These moves came after the IMF renewed its concerns about El Salvador’s Bitcoin initiatives.
Julie Kozack, director of the IMF’s Communications Department, stated that the country’s stance on Bitcoin remains an ongoing topic of discussion. She said:
“What [IMF] has recommended is narrowing the scope of the 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 acknowledgment that some risks associated with El Salvador’s Bitcoin involvement have not yet materialized.
Despite the IMF’s caution, many in the crypto community have advised the country to ignore this advice. Mathew Sigel, head of digital assets at VanEck, accused the IMF has held El Salvador “hostage” for its pro-Bitcoin stance, despite the country’s economic and social progress.
Instead, Sigel encouraged President Nayib Bukele to “hang in there” as his “vision is bringing about remarkable transformation.”