Topic: IMF is jealous of El Salvador, LOL - page 2. (Read 482 times)

Sometimes the IMF's attitude in judging something is too excessive in my opinion, including the Bitcoin issue in El Salvador.
I have opened the profile of matthew_sigel's x account and saw many tweets made about Bitcoin and crypto that are more positive.

The second and third points are true if we examine the sources spread regarding the El Salvador economy.

Indeed, the IMF continues to send statements to the president of El Salvador regarding the negative impact of using Bitcoin as a means of payment. Meanwhile, many countries in the world continue to make Bitcoin one of the innovations in the modern economic world. Bahrain, for example, reportedly that the Bahrain bank launched a Bitcoin investment product as stated by Bitcoin Archive on their x account.

One of the IMF's main goals is to "prevent financial crises," which is why they advise El Salvador to proceed cautiously with Bitcoin due to its high volatility. They are concerned that such an asset could affect the country’s financial stability if the market dumps or, in a worst-case scenario, collapses. However, pro-Bitcoin advocates argue that it's more likely for fiat to collapse than Bitcoin since fiat is controlled by a few, while Bitcoin operates as a global currency.

It’s understandable why the IMF is concerned as El Salvador has a debt of $30 billion as of March 2024, which is 82.8% of their GDP. That percentage indicates the country is facing financial struggles. Still, the president's reasoning for investing in Bitcoin is to attract investors to the country, although there haven't been significant developments in that area yet.

More info about Debt-to-GDP ratio

https://en.wikipedia.org/wiki/Debt-to-GDP_ratio

Interesting to see what will happen after he is gone, will there be a push back for BTC policies and wouldn't they go to smitherines - I hope not, because El Salvador is a real example for everybody to see, follow, and study.

The Central African Republic followed El Salvador's path but quickly failed afterwards. Not every country that follows El Salvador's path is successful, just like us, not every investor makes a profit just by investing in bitcoin. It all depends on each investor's strategy and vision.

Also, relying solely on bitcoin investments to pay off the national debt is neither a wise idea.

I believe that El Salvador's development is due to the wise leadership of Nayib Bukele, not their total dependence on bitcoin. Crime rates have dropped significantly and made the country more stable, thus paving the way for the development of other industries, especially tourism and labor export, which are two of their strengths.

If Bitcoin gets to say $300K then El Salvador will have no problem repaying it's debt completely and still hold a sizable amount of bitcoins.

The only question is, if there is any OTC broker who would arrange for the cash to be delivered.

I think it's pretty obvious though, I mean this has been the stance of IMF ever since El Salvador adopted Bitcoin and so I wouldn't be surprised up to now that this still hold grudge against the country that make Bitcoin a legal tender because it goes against the basic tenant of monetary.

And who knows, maybe when we reaches a new all time high and El Salvador has hold a lot of Bitcoin, maybe they can pay off some of their debts thru that profits and it doesn't sit will well with IMF because they wanted countries to be depended on them.

If El Salvador sets a precedence, and they are successful, then maybe there are some countries that are going to follow so that they can also pay their loans and debts to this world organizations.

Regarding El Salvador's policy, the IMF has repeatedly warned El Salvador with the reason that they warned El Salvador but El Salvador as we know it has no negative impact after they made Bitcoin a legal tender even though it was not in a state that forced its citizens to use Bitcoin.
We think it is a very wise policy and until now even though I am not a native of El Salvador, they do not seem to be experiencing any problems related to the economic system.

In fact, for me personally, El Salvador's policy has begun to spread even though they have not dared to issue an official decision regarding the use of Bitcoin as a legal tender.

What people can expect to them? They don't have any control of crypto and they want countries to continue to deal with them since this is how they earned money. They try to eliminate bitcoin by putting those sanction, then we can see how great the El Salvador President since they didn't budge despite of somehow we can call it harassing and they continue to believe that bitcoin would bring something great for their country.

Since many years pass already and we see El Salvador is doing fine then we can assume that they are successful and not reliant to USD since they are earning good with bitcoin. Hopefully we can also see that bitcoin soar up high and El Salvador will earn a lot of money since for sure this will shutdown those entities that discourage them to use bitcoin and make it as their alternative currency.

It is certain and will happen, but the President of El Salvador is smart and has also reviewed this before making his decision. It could be the ultimate dream of the leader of El Salvador if perhaps they will pay off all their debts with the IMF or others with the help of BTC investment instruments.

I think the IMF is only talking about the economic inequality that is currently widening and trying to provide recommendations in addressing potential fiscal and financial stability issues that come from the Bitcoin initiative as I read in the news from the OP's post link.

However, one thing that is most needed now is how all countries will be able to pay off their debts from various sources including the IMF whose interest continues to accumulate over time, including El Salvador.

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.

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 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.

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.

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.

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/

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!

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https://cryptonews.com/news/imf-urges-el-salvador-to-scale-back-bitcoin-law-in-ongoing-negotiations/