IMF Seeks Tighter Bitcoin Restrictions in El Salvador Amid $1.4 Billion Funding Talks; Thailand Proposes National Credit Guarantee Agency to Aid SMEs

The International Monetary Fund (IMF) is pressing El Salvador to tighten restrictions on Bitcoin purchases as part of ongoing negotiations for a $1.4 billion extended funding arrangement. The IMF's technical memorandum of understanding includes a condition of "no voluntary accumulation of BTC by the public sector" and restricts public sector issuance of debt or tokenized instruments indexed to or denominated in Bitcoin. El Salvador's executive director at the IMF stated that amendments to the Bitcoin Law clarify Bitcoin's legal nature, making its acceptance voluntary and confining the public sector's role. In Thailand, the Ministry of Finance and the Bank of Thailand have drafted legislation to establish a National Credit Guarantee Agency (NaCGA). The NaCGA aims to transform Thailand's lending landscape and support SMEs in accessing funding by providing credit guarantees to borrowers, including non-bank entities and bond issuers. The draft legislation is scheduled for submission to the Cabinet next month.