ChainCatcher news, according to Bitcoin.com, data from the Central Bank of El Salvador shows that since October 2024, the proportion of cryptocurrency remittances in the country has remained below 1% of the total. This figure stands in stark contrast to the nearly 5% peak in October 2021 when the country adopted Bitcoin as legal tender.Financial writer John Paul Koning pointed out that although President Nayib Bukele has stated that traditional financial institutions charge up to 25% in fees for remittances, the official digital wallet Chivo offers zero fees, cryptocurrency remittances have failed to gain widespread adoption among the dollarized population in the country.According to an agreement reached with the International Monetary Fund (IMF), the Salvadoran government will terminate or sell the operations of Chivo and revoke Bitcoin's legal tender status to reduce Bitcoin's share in its economy.

ChainCatcher news, according to Cointelegraph, the Salvadoran Congress has swiftly passed legislation to amend its Bitcoin law to comply with the International Monetary Fund (IMF) agreement.The new bill changes the requirement for the private sector to accept Bitcoin from mandatory to voluntary. This reform was passed with 55 votes in favor and 2 against.

ChainCatcher news, according to Jinshi reports, the International Monetary Fund (IMF) has raised its forecast for U.S. economic growth in 2025 to 2.7%, up from the October forecast of 2.2%; the expected economic growth rate for 2026 is 2.1%, higher than the previous forecast of 2.0%.Under the new U.S. government, policy changes are likely to drive inflation up in the short term, and excessive relaxation of regulatory measures may weaken financial safety protections and increase financial vulnerabilities.

ChainCatcher news, IMF spokesperson Kozak stated that the use of Bitcoin as legal tender in El Salvador will be voluntary when asked about it. The agreement reached between the IMF and El Salvador aims to mitigate potential Bitcoin risks based on the IMF policy framework. Furthermore, Kozak declined to comment on Trump's U.S. strategic Bitcoin reserve plan, stating that a comprehensive assessment will be conducted when the policy is implemented.

ChainCatcher news, according to Cointelegraph, El Salvador has reached a $1.4 billion loan agreement with the International Monetary Fund (IMF), planning to receive funding support over the next 40 months. As part of the agreement, the country will make it voluntary for merchants to accept Bitcoin payments, while gradually reducing the government's involvement in Bitcoin-related projects, including a phased withdrawal from the management of the state-supported wallet app Chivo.The IMF stated that this move will significantly reduce the potential risks associated with Bitcoin projects, while clearly stipulating that the public sector's participation is limited to specific activities within the Bitcoin economy. Additionally, taxes will be paid only in U.S. dollars, not in Bitcoin. The agreement still requires approval from the IMF's executive board, marking the end of a four-year negotiation with the IMF since El Salvador adopted Bitcoin as legal tender in June 2021. The IMF has previously warned that the speculative nature of Bitcoin could pose financial risks to the country. The agreement will also facilitate additional financing from institutions such as the World Bank, with total financing exceeding $3.5 billion.Nevertheless, El Salvador's presidential Bitcoin advisor Max Keiser expressed disdain on social media platform X, stating that the use of Bitcoin in the country "has never been so active and continues to grow." However, surveys show that 92% of Salvadorans have not used Bitcoin for transactions, an increase from 88% in 2023.

ChainCatcher news, according to Solid Intel, El Salvador may reduce its Bitcoin plan to reach a $1.3 billion agreement with the International Monetary Fund (IMF).The El Salvadoran government will also commit to reducing the budget deficit by 3.5 percentage points over three years through spending cuts and increased taxes, and will advance this plan by passing an anti-corruption bill and increasing foreign exchange reserves from $11 billion to $15 billion.The IMF has opposed El Salvador's adoption of this digital currency, stating that it poses risks to financial stability and integrity, and urged the Bukele government to stop using cryptocurrency as legal tender.

ChainCatcher news, the International Monetary Fund (IMF) recommends that El Salvador narrow the scope of its Bitcoin law and strengthen regulatory oversight in ongoing negotiations regarding a potential loan program.The organization expressed concerns about the potential risks associated with El Salvador's adoption of Bitcoin, which is a key issue in the negotiations for the country's new loan program aimed at creating a policy framework that helps enhance productivity and strengthen economic reforms.

ChainCatcher news, according to Bitcoin.com, the International Monetary Fund (IMF) published a blog post this week written by Shafik Hebous, Deputy Director of the IMF's Fiscal Affairs Department, and another economist, Nate Vernon-Lin.The authors emphasized the environmental challenges posed by cryptocurrency mining and artificial intelligence data centers, noting that these sectors already account for 2% of global electricity consumption. They added, "According to our estimates based on projections from the International Energy Agency (IEA), this share could rise to 3.5% within three years."The report warns that this increasing energy use could lead to cryptocurrency mining contributing 0.7% of global carbon emissions by 2027, and emphasizes, "Expanding the analysis to data centers (according to IEA estimates) means that by 2027, carbon emissions from these sectors could reach 450 million tons, accounting for 1.2% of the global total."To address this issue, Hebous and Vernon-Lin proposed a targeted electricity tax, stating, "A tax system is a way to guide businesses to reduce emissions. According to IMF estimates, a direct tax of $0.047 per kilowatt-hour would encourage the cryptocurrency mining industry to curb its emissions in line with global targets."However, critics argue that these taxes could severely hinder the development of the cryptocurrency industry. Additionally, some studies have shown that the environmental impact of cryptocurrency mining remains relatively small compared to other major industries such as e-commerce or traditional finance.

ChainCatcher news, according to Cointelegraph, the Deputy Director of the International Monetary Fund (IMF) Fiscal Affairs Department, Shafik Hebous, and economist Nate Vernon-Lin from the Climate Policy Department stated that a tax of 0.047 yuan per kilowatt-hour "will drive the cryptocurrency mining industry to curb its emissions in line with global goals." If the impact of miners on local health is taken into account, the tax will rise to 0.089 dollars per kilowatt-hour. Increasing taxes will raise the average electricity price for crypto miners by 85%, generate an additional 5.2 billion dollars in global government revenue annually, and reduce emissions by 100 million tons per year, equivalent to Belgium's emissions.They claimed that the electricity consumed by a single Bitcoin transaction is roughly equivalent to the average electricity usage of a Pakistani person over three years, while the energy required for the AI model ChatGPT is ten times that of a Google search. The two also proposed a 0.032 dollars per kilowatt-hour energy usage tax on AI data centers, which would rise to 0.052 dollars when accounting for pollution costs, as "these data centers are often located in areas with greener electricity." IMF officials stated that this tax could generate 18 billion dollars in revenue for the government each year.

ChainCatcher message, the IMF indicates that the Federal Reserve should wait until at least the end of 2024 to lower the policy interest rate. For the Federal Reserve, it is prudent to wait for clearer evidence that inflation is consistently returning to the 2% target before cutting rates.

ChainCatcher news, according to CryptoSlate, the International Monetary Fund (IMF) recently released a report stating that amidst global financial instability, Bitcoin (BTC) is increasingly becoming a key channel for cross-border capital flows. The report highlights significant transaction volumes from countries like Argentina and Venezuela, where citizens face hyperinflation and strict financial controls. In these regions, Bitcoin has become a necessary financial tool for preserving wealth and accessing global markets, rather than just a speculative investment.However, the IMF report also warns that the widespread use of Bitcoin for cross-border flows may pose potential risks. The lack of oversight and the anonymity provided by cryptocurrencies could complicate efforts by regulators to monitor and control financial transactions to prevent illegal activities such as money laundering.

ChainCatcher news, the International Monetary Fund (IMF) has requested the Federal Board of Revenue (FBR) of Pakistan to impose capital gains tax (CGT) on cryptocurrency investments as one of the requirements for qualifying for a $3 billion bailout. The $3 billion assistance provided by the IMF aims to stabilize Pakistan's excessively inflated formal economy and prevent it from defaulting on its debts. If Pakistan agrees to these conditions, the IMF will disburse approximately $1.1 billion.

ChainCatcher news, G20 member country leaders expressed support on Saturday for the recommendations of the Financial Stability Board (FSB) and the International Monetary Fund (IMF) regarding the regulation and oversight of crypto asset activities and markets, as well as global stablecoins.The G20 will continue to closely monitor the rapidly evolving risks of the crypto asset ecosystem. The G20 finance ministers and central bank governors will discuss advancing the proposed roadmap by the FSB and IMF at their meeting in October 2023. The next G20 finance ministers and central bank governors meeting is scheduled to be held in Marrakech, Morocco.The G20 leaders' summit declaration stated, "We warmly welcome the comprehensive document submitted by the IMF-FSB (which includes the roadmap), which will support a coordinated and comprehensive policy and regulatory framework, while taking into account the pervasive risks as well as the risks unique to emerging markets and developing economies (EMDE), and the FATF standards being implemented globally to address money laundering and terrorist financing risks."G20 leaders acknowledged the work plans of the FSB and standard-setting bodies (SSBs) on crypto assets, as well as the report from the Bank for International Settlements (BIS) on key elements and risks of the crypto ecosystem.G20 leaders also called for the swift implementation of the Crypto Asset Reporting Framework (CARF) and the amendments to the Common Reporting Standard (CRS).

ChainCatcher news, according to CoinDesk, the International Monetary Fund (IMF) and the Financial Stability Board (FSB) released a joint policy roadmap on Thursday, stating that merely banning cryptocurrencies will not eliminate their risks. The joint document from the IMF and FSB will be submitted to the G20 this weekend.The report states that to address the macroeconomic risks posed by cryptocurrencies, jurisdictions should "strengthen monetary policy frameworks, guard against excessive volatility in capital flows, and provide clear tax treatment for cryptocurrencies." The report reiterates the IMF's position that a comprehensive ban on cryptocurrencies may not help mitigate the associated risks, and targeted restrictions may be particularly suitable for emerging economies.The report notes that implementing a comprehensive ban in one jurisdiction, deeming all cryptocurrency activities (including trading and mining) illegal, is not only costly and technically challenging but may also "lead to activities shifting to other jurisdictions, thereby creating spillover risks."The report emphasizes that restrictive measures should not replace strong macroeconomic policies, credible institutional frameworks, and comprehensive regulation and supervision, which are the first line of defense against the macroeconomic and financial risks posed by crypto assets; however, this does not mean that all bans should be ruled out. During times of stress or when countries find better internal solutions, jurisdictions may consider targeted temporary restrictions to manage certain risk factors.In response to G20 countries' concerns about the spread of stablecoins, the IMF/FSB roadmap proposes solutions. The report states that if stablecoins denominated in foreign currencies are easier and cheaper to access than foreign currency bank accounts, rapid capital outflows or reversals may occur. While stablecoins can facilitate widespread transactions, they may pose risks in maintaining stable value and rely on private issuers. Global stablecoins adopted by multiple jurisdictions "may transmit volatility more abruptly than other crypto assets and could pose significant risks to financial stability."

ChainCatcher news, according to CoinDesk, the Chair of the Financial Stability Board (FSB) Klaas Knot stated that the FSB and the International Monetary Fund (IMF) will launch a joint document on global cryptocurrency policy at the G20 summit.It is reported that the document includes a roadmap for implementing a cryptocurrency policy framework, including global coordination, cooperation, and information sharing. The document was submitted at the request of the G20 presidency of India.

ChainCatcher news, the International Monetary Fund (IMF) working paper on taxation and cryptocurrency assets warns that taxing cryptocurrency assets is more challenging, and the current tax system is not designed to handle these assets. The IMF's working paper emphasizes that certain crypto assets may not persist in the future, while other enduring assets will become "fundamental innovations in decentralized finance." Therefore, the IMF states that the tax system must adapt to cryptocurrencies with "coherence, clarity, and effectiveness." (source link)

ChainCatcher news, according to Bloomberg, the International Monetary Fund (IMF) is "working hard" on a concept for a global infrastructure to ensure interoperability for settlements between digital currencies issued by central banks of various countries.IMF President Kristalina Georgieva mentioned at a meeting in Rabat, Morocco, that such a platform would avoid the so-called underutilization of CBDCs. (Source link)

ChainCatcher news, the Group of Seven (G7) intergovernmental political forum has stated that it will commit to implementing the upcoming regulatory framework for crypto assets from the Financial Stability Board (FSB) and the International Monetary Fund (IMF) recommendations on central bank digital currencies.The G7 finance ministers and central bank governors announced that they had discussed the issue of crypto asset regulation at a meeting held last Saturday in Niigata, Japan, ahead of next week's G7 summit. This year's summit host, Japanese Prime Minister Fumio Kishida, stated that G7 leaders would issue a joint declaration supporting stricter crypto rules.As the G20 rotating presidency, India has been advocating for globally coordinated crypto regulations. In February this year, the organization stated that the upcoming global crypto framework would be based on a new comprehensive report jointly drafted by the IMF and FSB. The G7 indicated that it would adhere to the standards set by the FSB.The announcement stated, "We look forward to the FSB finalizing its high-level recommendations by July 2023. We are committed to implementing an effective regulatory and supervisory framework for crypto asset activities and markets, as well as stablecoin arrangements, that aligns with the FSB's recommendations and standards and the guidelines set by SSBs (standard-setting bodies)." (source link)