# IMF Urges El Salvador to Scale Back Bitcoin Adoption

*Author: David Christopher*
*Published: Oct 4, 2024*
*Source: https://www.bankless.com/de/imf-urges-el-salvador-to-scale-back-bitcoin-adoption*

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The IMF has renewed its call for El Salvador to reduce its exposure to bitcoin as part of broader economic discussions.

## What's the scoop?
- **Ongoing Negotiations**: Talks between the IMF and Salvadoran authorities focus on economic stabilization and managing risks from Bitcoin.
- **Bitcoin Risks:** The [IMF highlighted the need](https://www.theblock.co/post/313823/bitcoin-widespread-adoption-el-salvadors-bukele-time) for stronger regulatory frameworks around Bitcoin to mitigate fiscal and financial stability risks.
- **Limited Adoption:** While Bitcoin adoption in El Salvador has been limited, President Bukele still views it as a “net positive” for the country.

## Bankless Take:
The IMF’s push to narrow El Salvador’s Bitcoin law continues the tension between the organization, which has been wary of [BTC’s integration for years now](https://www.reuters.com/business/finance/imf-says-el-salvadors-bitcoin-risks-have-not-materialized-should-be-addressed-2023-02-11/), and the crypto-friendly nation. Despite limited adoption and the IMF’s concerns, Bitcoin remains central to President Bukele’s plans. How El Salvador navigates this pressure and any future responses could set a precedent for other countries looking to embrace digital currencies while balancing global financial relations.

[![](https://storage.ghost.io/c/e4/b7/e4b77544-5a37-4f0b-8824-8440aa348476/content/images/2024/10/image-1.png)](https://www.imf.org/en/News/Articles/2024/08/06/pr-24302-el-salvador-imf-staff-statement)