The Central American country’s finance minister assured the International Monetary Fund (IMF) that El Salvador did not intend to abandon the dollar.
El Salvador will not replace the U.S. dollar with Bitcoin as legal tender, Finance Minister Alejandro Zelaya said on Wednesday as the Central American nation sought technical assistance from the World Bank to implement Bitcoin regulations.
This month, El Salvador became the first country to adopt Bitcoin as legal tender, with President Nayib Bukele touting the potential of cryptocurrency as a transfer currency for Salvadorans abroad.
El Salvador has used the US dollar as legal tender for two decades after abandoning its own currency.
Finance Minister Zelaya said he clarified to the International Monetary Fund (IMF) last week that El Salvador would not abandon the US dollar and replace it with cryptocurrency.
“We gave our official position to the IMF. We have been adamant we are not replacing the US dollar as legal tender in El Salvador, ”Zelaya said at a press conference.
El Salvador is negotiating a loan with the IMF for a billion dollar program to close fiscal gaps through 2023.
Zelaya said El Salvador continues to negotiate with the IMF and called the talks a success.
El Salvador has also requested technical assistance from the World Bank on the rules and implementation of Bitcoin, Zelaya said.