The International Monetary Fund (IMF) is collaborating with El Salvador to address the financial risks linked to its Bitcoin adoption.
The aim is to create a solid plan to stabilize and grow the economy while managing Bitcoin as legal tender.
The IMF’s recent update, following discussions led by Raphael Espinoza, highlighted a focus on improving public finances, enhancing bank reserves, and increasing financial transparency.
The organization emphasized the need for El Salvador to boost its fiscal balance by 3.5% of GDP over three years, optimizing public spending on services and infrastructure.
Both parties acknowledged potential risks from Bitcoin, including concerns about fiscal stability and transparency. They agreed on the need for further measures to address issues like corruption and money laundering.
El Salvador, which began using Bitcoin as legal tender in September 2021 under President Nayib Bukele, is committed to its Bitcoin strategy despite earlier IMF warnings. The country continues to buy Bitcoin daily through a Dollar Cost Averaging approach and currently holds about 5,835 BTC, valued at roughly $334 million.
An analyst has outlined potential scenarios for Bitcoin’s price, projecting it could close 2024 within the range of $108,000 to $155,000 if historical trends continue.
Bitcoin has been climbing steadily, with some of its momentum tied to recent moves by the Federal Reserve.
With October on the horizon, investors are eagerly anticipating what the month might hold for Bitcoin and the broader crypto market.
10x Research’s recent analysis suggests that Bitcoin may be poised for a substantial rally by late 2024.