Pakistan–El Salvador Bitcoin pact sparks IMF alarm

New Delhi: The recent Pakistan-El Salvador Bitcoin deal has raised serious concerns as it shows that the adoption of cryptocurrency can allow emerging economies to bypass IMF oversight at a time when money laundering and terror financing are posing a major problem worldwide, an article said.

The collaboration between Pakistan and El Salvador emerges at a critical juncture when both states operate under IMF programmes, while at the same time pursuing cryptocurrency strategies that directly contravene IMF guidance.

Having narrowly averted default in 2023, Pakistan faces steep financing requirements, with the IMF estimating the country will need more than $100 billion in external funding till 2029.