**IMF Urges El Salvador to Rethink Bitcoin Policies**

In an Oct. 3 press conference, the International Monetary Fund (IMF) renewed its call for El Salvador to scale back its Bitcoin policies. Julie Kozack, IMF's communications director, emphasized the need to narrow the scope of the Bitcoin law, strengthen regulatory frameworks, and limit public sector exposure to Bitcoin.

Since El Salvador adopted Bitcoin as legal tender in 2021, the IMF has consistently urged the country to revert to traditional financial systems. Despite these pressures, many of the risks associated with Bitcoin adoption have yet to materialize.

The IMF remains critical of Bitcoin, advocating for central bank digital currencies (CBDCs) instead. In September, the IMF introduced the REDI framework to support CBDC development, focusing on regulation, education, design, and incentives.