The Finance Minister of this Central American country assured the International Monetary Fund (IMF) that El Salvador has no plans to abandon the U.S. dollar.
El Salvador’s Finance Minister, Alejandro Zelaya, said on Wednesday that El Salvador will not use Bitcoin to replace the U.S. dollar as legal tender because the Central American country seeks technical assistance from the World Bank to implement Bitcoin regulation.
This month, El Salvador became the first country to adopt Bitcoin as its legal tender, and President Nayib Bukele touted the potential of this cryptocurrency as a remittance currency for Salvadorans overseas.
El Salvador has used the U.S. dollar as its legal tender for the past two decades after giving up its national currency.
Finance Minister Zelaya said that he clarified to the International Monetary Fund (IMF) last week that El Salvador will not abandon the U.S. dollar and replace it with cryptocurrency.
“We have expressed our official position to the International Monetary Fund. We have always emphasized that we will not replace the U.S. dollar as the legal tender of El Salvador,” Zelaya said at a press conference.
El Salvador is negotiating with the International Monetary Fund on a $1 billion loan to make up for the budget gap before 2023.
Zelaya said that El Salvador continued to negotiate with the International Monetary Fund and said that the negotiations were successful.
Celaya said that El Salvador has also sought technical assistance from the World Bank on the rules and implementation of Bitcoin.