In 2021, El Salvador became the first country in the world to legally put bitcoin into circulation alongside the US dollar.

The risk posed by Bitcoin, the legal currency in El Salvador, remains a "key element" in the negotiations between the International Monetary Fund (IMF) and the Central American country, a spokeswoman for the financial organization said on Thursday, October 3.

"The goal is to reach an agreement on a new IMF-supported program that will help with macroeconomic stabilization and adjustment, as well as reforms that will boost growth," said Julie Kozack at a press conference in Washington.

Salvadoran authorities are negotiating with the IMF a loan of around US$ 1.3 billion starting in 2021, without reaching an agreement.

"Current discussions are focused on policies to strengthen reforms" that serve to boost productivity and economic governance, the spokeswoman added. In addition, "addressing the risks arising from bitcoin is a key element of these discussions," she said.

The IMF has recommended "taking advantage of the scope of the Bitcoin Law, strengthening the regulatory framework and supervision of the bitcoin ecosystem," as well as "limiting the public sector's exposure" to this currency, the spokeswoman said.

In 2021, at the initiative of President Nayib Bukele, El Salvador became the first country in the world to legally put bitcoin into circulation alongside the US dollar.

In March 2024, Bukele claimed that El Salvador was storing US$406.6 million with 5,689 bitcoin stored "in a cold wallet in a physical vault" in the country. At current prices, the country would have 5,865 bitcoins equivalent to US$320.3 million, according to the official website of the Salvadoran government.

To promote the use of bitcoin, Bukele created the Chivo Wallet and gave each user $30 as a welcome bonus. His critics are asking him to disclose the amount he invested.