IMF are afraid if El Salvadorian abandon USD and choose Bitcoin to be used as legal tender or they afraid if people choose to invest in Bitcoin rather than earn small APY in banks.
For the record, Nayib Bukele haven't sold any of the coins he bought, he's a long term holder and have no plan to sell the coins, so I don't think it will change his mind after IMF ask him in order to mitigate the risk of Bitcoin.
IMF make money from giving loan, if there's a country can be successful just only invest in one asset, it will threaten their loan service.
Topic: IMF is jealous of El Salvador, LOL (Read 84 times)
Quote
Julie Kozack outlined several recommendations from the IMF, including narrowing the scope of El Salvador’s Bitcoin law, bolstering regulatory oversight, and reducing the government’s exposure to Bitcoin.
https://cryptonews.com/news/imf-urges-el-salvador-to-scale-back-bitcoin-law-in-ongoing-negotiations/
https://cryptonews.com/news/imf-urges-el-salvador-to-scale-back-bitcoin-law-in-ongoing-negotiations/
As of June this year, El Salvador owes the IMF 143.6 million. Every creditor will seek a means to collect its money from the debtor. The country owns about 5,892.76 BTC and has a policy of buying one Bitcoin daily. IMF might not be comfortable with such exposure, maybe because of the volatility of Bitcoin. They want the country to cut their investment in Bitcoin and diversify funds to other areas.
But the president of El Salvador is a strong believer in Bitcoin. He sees the future profitability of the coin and wants to keep holding and adding more to the state's treasury. He has already started making bold economic reforms that will reduce the risk of investing in Bitcoin. One of them is the proposed 2025 budget deficit financial plans. The budget will be funded by internally generated revenues without loans from any organization. Nayib Bukele can achieve it because he has reduced budget deficits since he assumed office. In 2019, when he became president, the budget deficit was $1.2 billion, but last year, it stood at $338 million.
IMF is just surprised that El Salvador's economy has not nosedived as they predicted, so they are seeking other means to influence the country's Bitcoin policies. After all, how many developing countries have experienced dramatic economic growth with IMF loans?
I do agree that the significant adoption of Bitcoin in El Salvador has yielded favorable results like the 10% increase in GDP and the arrival of tourists. And I am not just blindly taking IMF side on this but they have some point about excessive Bitcoin adoption for public fund might pose a risk to the country's economic stability due to aspects such as handling public finances or making sure that regulatory oversight is effective. As far as I know IMF do not force El Salvador to completely abandon Bitcoin. What they would suggest instead is actually to fine tune the Bitcoin approach for better financial stability.
But it is also said that El Salvador has had its share of resilience and growth, it is thus a matter of balance between further progress with addressing the concerns of the IMF to avoid potential problems in the future. This is not simply a black and white issue, there has to be some meeting point somewhere that will benefit both crypto adoption and stability.
But it is also said that El Salvador has had its share of resilience and growth, it is thus a matter of balance between further progress with addressing the concerns of the IMF to avoid potential problems in the future. This is not simply a black and white issue, there has to be some meeting point somewhere that will benefit both crypto adoption and stability.
I agree with you here. Two sides have something to say in their defense, of course, El Salvador may be seen as a victim of sorts, but if it plays its cards right, their position will be even better in the long run. We shall see what their reply will be.
I do agree that the significant adoption of Bitcoin in El Salvador has yielded favorable results like the 10% increase in GDP and the arrival of tourists. And I am not just blindly taking IMF side on this but they have some point about excessive Bitcoin adoption for public fund might pose a risk to the country's economic stability due to aspects such as handling public finances or making sure that regulatory oversight is effective. As far as I know IMF do not force El Salvador to completely abandon Bitcoin. What they would suggest instead is actually to fine tune the Bitcoin approach for better financial stability.
But it is also said that El Salvador has had its share of resilience and growth, it is thus a matter of balance between further progress with addressing the concerns of the IMF to avoid potential problems in the future. This is not simply a black and white issue, there has to be some meeting point somewhere that will benefit both crypto adoption and stability.
But it is also said that El Salvador has had its share of resilience and growth, it is thus a matter of balance between further progress with addressing the concerns of the IMF to avoid potential problems in the future. This is not simply a black and white issue, there has to be some meeting point somewhere that will benefit both crypto adoption and stability.
Now that El Salvador is doing well with their country and they are trying to interfere?
Because they are not actually international monetary fund but international fiat fund. What they recognize is fiat and not money. They do not care about how fiat are one of the worst money someone can have in long term. IMF is one of the organizations in the world that do talk about what does not concern their organization. They predicted deflation and better economic for my country this year, but the inflation this year in my country skyrocket till now. 
I know how pretentious and self serving the IMF can be, but they're not entirely wrong for sending warnings and maming sure they avoid financial risk.
Adopting bitcoin is a very great initiative, but can we say all these improvements in the country was solely because they adopted bitcoin as legal tender or because they put better policies in place and managed the country better under this present government?
My point is, crediting bitcoin alone for this success might lead them to neglect other aspects of the country and that would be disastrous.
That being said, it was obvious that El Salvador will face many obstacles from these kind of institutions and big countries because they adopted bitcoin as legal tender. Accepting what others are fighting against means your standing against them. The IMF wants El Salvador to tighten bitcoin laws and be more controlling, lol. I mean, that's exactly what most countries want, to restrict bitcoin in a way that they have control of everything. This alone goes against what bitcoin stands against.
Adopting bitcoin is a very great initiative, but can we say all these improvements in the country was solely because they adopted bitcoin as legal tender or because they put better policies in place and managed the country better under this present government?
My point is, crediting bitcoin alone for this success might lead them to neglect other aspects of the country and that would be disastrous.
That being said, it was obvious that El Salvador will face many obstacles from these kind of institutions and big countries because they adopted bitcoin as legal tender. Accepting what others are fighting against means your standing against them. The IMF wants El Salvador to tighten bitcoin laws and be more controlling, lol. I mean, that's exactly what most countries want, to restrict bitcoin in a way that they have control of everything. This alone goes against what bitcoin stands against.
What is this IMF are doing, are they blind of that information....?
Now that El Salvador is doing well with their country and they are trying to interfere?
There message is loud and clear, they want to set rules and regulations to improve minimize the risk, but those information are already enough to tell them shut up!
El Salvador as a small nation, can create new monetary laws or policies globally. They can be a first nation with Bitcoin legal tender but it's more difficult to be a game-changer and force IMF to recognize their national treasury growth by investment in Bitcoin.Now that El Salvador is doing well with their country and they are trying to interfere?
There message is loud and clear, they want to set rules and regulations to improve minimize the risk, but those information are already enough to tell them shut up!
We see it, IMF see it but it won't be easy for El Salvador to have a good jump in their national rank with pressure of many big countries on IMF.
A portfolio tracker on El Salvador investment in Bitcoin since September 2021.
https://nayibtracker.com/
What is this IMF are doing, are they blind of that information....?
They do not care about these statistics. All IMF is concerned about is limiting bitcoin exposure to the public. They are trying to prevent bitcoin from being officially recognized as a currency. Obviously, threatened by it. They have to protect fiat now seeing how bitcoin is a serious matter and is here to stay. This can definitely be a discouragement for other countries to adopt bitcoin in their economies as they might be targeted by United Nations organizations. What a disappointment for El Salvador. I wonder how they will navigate through this.
What is this IMF are doing, are they blind of that information....?
Now that El Salvador is doing well with their country and they are trying to interfere?
There message is loud and clear, they want to set rules and regulations to improve minimize the risk, but those information are already enough to tell them shut up!
https://cryptonews.com/news/imf-urges-el-salvador-to-scale-back-bitcoin-law-in-ongoing-negotiations/
Now that El Salvador is doing well with their country and they are trying to interfere?
There message is loud and clear, they want to set rules and regulations to improve minimize the risk, but those information are already enough to tell them shut up!
https://cryptonews.com/news/imf-urges-el-salvador-to-scale-back-bitcoin-law-in-ongoing-negotiations/
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