The International Monetary Fund (IMF) has been urging El Salvador to make adjustments to its Bitcoin legislation since the country adopted it as legal tender in 2021. In its recent presentation, the IMF recommended that El Salvador limit its public sector's exposure to Bitcoin and enhance regulatory frameworks surrounding Bitcoin operations.

During a press briefing, IMF spokesperson Julie Kozack highlighted these recommendations, emphasizing the need for diligent oversight to mitigate potential fiscal risks associated with the cryptocurrency.

This is not the first indication from the IMF regarding Bitcoin regulations in El Salvador. In August, the IMF expressed similar sentiments by stating, "while many risks have not yet materialized, further efforts are necessary to improve transparency and mitigate potential risks from the Bitcoin project."

Furthermore, the IMF has consistently advised against the use of Bitcoin as legal tender, reiterating this stance in previous statements made in 2021. More recently, it praised El Salvador's budget plans for 2025, which aim for a debt-free status.

As of now, El Salvador holds approximately 5,892 BTC, valued at around $345 million at current prices. President Nayib Bukele has remarked that while his strategy to bolster Bitcoin adoption has been beneficial, the degree of adoption has not met initial expectations.

For additional details, you can read more about the IMF's ongoing recommendations and El Salvador's Bitcoin law journey.