The Central American country’s finance minister assured the International Monetary Fund (IMF) that El Salvador has no plans to abandon the dollar.
El Salvador will not replace the US dollar with Bitcoin as its legal tender, Finance Minister Alejandro Zelaya said on Wednesday, while the Central American nation called for technical assistance from the World Bank to implement Bitcoin regulation.
This month, El Salvador became the first country to adopt Bitcoin as a legal tender, with President Nayib Bukele promoting the potential of cryptocurrency as a remittance currency for Salvadorans abroad.
El Salvador has used the US dollar as its legal tender for the past two decades after abandoning its own currency.
Finance Minister Zelaya said he clarified last week to the International Monetary Fund (IMF) that El Salvador would not abandon the US dollar and replace it with the cryptocurrency.
“We gave our official position to the IMF. We have been emphatic, we do not replace the US dollar as a legal tender in El Salvador, “Zelaya told a news conference.
El Salvador is in the midst of negotiating loans with the IMF for a $ 1 billion program to correct budget gaps by 2023.
Zelaya said El Salvador continues to negotiate with the IMF and considered the talks a success.
El Salvador has also requested technical assistance from the World Bank on Bitcoin standards and implementation, Zelaya said.