Global monetary regulators have advised El Salvador to be cautious in expanding the country's openness to BTC because of "foreign exchange speculation" in the login password market.

A statement issued by the International Monetary Fund (IMF) on February 10th noted that because the number of bitcoins used in El Salvador was small, the losses caused by bitcoin to El Salvador did not become a reality. IMF staff recently made a tour of the host country.

According to the International Monetary Fund, El Salvador should address the risks of Bitcoin's protection of the country's fiscal sustainability and consumer rights and the details and stability of its financial sector.

It illustrates the need to recognise these risks, as the use of bitcoin in El Salvador is "likely to increase" and has been recognized as the country's currency since September 1. 2021.

Some urged El Salvador to reconsider its decision to sell representative bonds, as the International Monetary Fund made it clear that it should be "bypassed" because of its laws and regulations and financial risks. The statement emphasizes:

"due to the legal disputes in the encryption market, the vulnerability of the Finance Bureau and various foreign exchange speculation, the government should reconsider the plan to expand the opening of the national bitcoin, including the sale of representative bonds."

The conference also said that the Salvadoran government needs to improve the clarity of bitcoin transactions and the "operation" of its state-owned bitcoin wallet Chivo wallet.

Prior to this, according to recent media reports, the legal framework for Salvadoran bitcoin bonds was created on January 11, known as "active volcano bonds".

The Salvadoran government has indicated that the bonds will be used to repay sovereign debt and provide financial support for the proposed establishment of a "bitcoin city".

Bitcoin City is part of El Salvador's plan to once again attract data encryption investors. Some people have previously stressed that the priority of the host country in 2023 can address all possible digital currency-related crimes.

DitoBanxCEO Guillermo Contre Silva told Cointelegraph on January 6th that the establishment of a bitcoin office in El Salvador would become an "intermediate entity line" to solve such problems.