The finance minister of the Central American country has assured the International Monetary Fund (IMF) that El Salvador does not intend to abandon the dollar.
El Salvador will not replace the US dollar with Bitcoin as the legal tender, Finance Minister Alejandro Zelaya said on Wednesday when the Central American country requested 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 considering the potential of cryptocurrency as a currency for Salvadorans abroad.
El Salvador has been using the US dollar as a legal tender for the past two decades after abandoning its own currency.
Zelaya, finance minister, told the International Monetary Fund (IMF) last week that El Salvador would not abandon the US dollar and replace it with the crypto-currency.
“We have given our official position to the IMF. We were stressed, we are not replacing the US dollar as a legal tender in El Salvador, ‘Zelaya told a news conference.
El Salvador is in the midst of loan negotiations with the IMF for a $ 1 billion program to repair budget deficits by 2023.
Zelaya said El Salvador continues to negotiate with the IMF and calls the talks successful.
El Salvador also sought technical assistance from the World Bank for rules and implementation of Bitcoin, Zelaya said.