Topic: [Update] IMF urges El Salvador to remove Bitcoin as legal tender (Read 761 times)

That's maybe too far before it happens, but i know that will eventually happen if most of the developed countries will no longer rely on international banks for finance since they can get huge funds already out from bitcoin.  The leadership of Bukele has been very challenging and its not surprising why most of the countries are eyeing on El Salvador now if bitcoin can create a big progress on the country, because if not, expect that more negative criticisms will kill Bukele in the later part.

I like the parts in underline. I was afraid El Salvador was going to be bullied into doing what IMF wanted. World Bank and IMF are the biggest opposition to the mass adoption of bitcoin and we know why they fight against it that much. IMF thought El Salvador was Africa it can control any way it likes with its leaders bowing to pressure. It is good El Salvador told it off immediately without any fear.

It's not to our surprise considering that banks are the ones who control the mainstream economy. The IMF patronizes the legacy banking system, so anything (or anyone) that goes against it will be considered as a threat to their very existence. El Salvador's government made a smart (but risky) move that could play well in the future as Bitcoin continues to reach new heights. If highly successful, other countries will join the game, effectively taking banks' a "big piece of the pie". The more popular Bitcoin becomes, the faster we'll be heading towards "hyperbitcoinization". Who knows what will be of the IMF if countries abandon Fiat in favor of Bitcoin? Just my thoughts

I see this as a portion of the monopoly that the IMF must have a broad capacity for the countries under it, for example, like El Salvador, which is considered unsettling because it uses bitcoin as a medium of exchange.
"It's all about fear" which does not benefit the IMF at all and can become a hot ball that will then roll over to the IMF, because when bitcoin prices soared and the amount of debt can be measured easily, that's why now the IMF is giving a strong warning.

to hugeblack: edit the topic creation post to include the update.

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anyways i knew el salv cared more about wanting sovereignty more than dependence on international loans with tight conditions.

because the IMF is not an 'authority', its power only extends to the conditions of loans.. it has to come to an agreement on loan terms..
infact the IMF cant really refuse to give a loan. as that would send a bad message that the IMF is not a fund to help countries.
 el salv, it appears to want to push back and negotiate any future loans to not have clauses/conditions that are too oppressive.

for instance it should be none of the IMF's business to ask a country to start charging fee's on a payment system(chivo) that has nothing to do with the IMF. the IMF doesnt use chivo wallet. didnt create chivo wallet. heck IMF doesnt handle bitcoin or millisats.

EG Russian vodka. Russia can ask to increase the wholesale price of vodka exports and charge extra tax..
so IMF can decide how the SDR is spent and decide its interest rate

but Russia cannot demand Belgium to do anything to Belgium chocolate prices inside Belgium.
so the IMF cant tell a country how to use a non SDR payment system.

imagine if the IMF did start telling countries to charge 1% fee on silly things the IMF didnt control. that is a complete over reach
imagine if your mortgage provider told you to only eat one sandwich a day for 10 years as your only diet to ensure repayment. thats a complete over reach

The IMF continues to pressure El Salvador after the them decision to adopt bitcoin as a whole and also bonds in the form of bitcoin, but I think the IMF fear is not because of the possibility of disrupting the country economic stability, but it seems that the IMF is afraid that El Salvador will be able to be independent and free from financial dependence regarding the IMF, the reason for the IMF in banning El Salvador from adopting Bitcoin is certainly inseparable from their own personal interests, we know that the IMF is a world bank and is no different from other conventional banks who are afraid of losing their customers later. The decision to continue adopting bitcoin deserves our appreciation for President Nayib bukele and even he bravely mocks the IMF with funny memes and tweets in response to the IMF appeal.

UPDATE:  El Salvador Rejects IMF Call to Abandon Bitcoin as Legal Tender

El Salvador has rejected the recommendation by the International Monetary Fund (IMF) to drop bitcoin as legal tender. The country’s finance minister reportedly “angrily” said, “No international organization is going to make us do anything, anything at all.”




Source and more ---> https://news.bitcoin.com/el-salvador-rejects-imf-call-to-abandon-bitcoin-as-legal-tender/

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So, the government's position was strongly rejecting, with the IMF warning to interfere in the internal financial affairs of the state, to see how opinions will be in the future, especially since the government's position is very bold with regard to Bitcoin.

Going by the request El-Savador's made of $1.3 billion dollars from IMF to pay it debt but El-Savador maintain it stance with or without IMF granting the fund it still move on and doesn't determine it choice to change mind on bitcoin it legal tender, El-Savador's decision has a positive future implication which it foreseen before the adoption, countries go in debt with or without bitcoin a legal tender.

I don't think the executive board of IMF can stop them if the bill will be approved.  But i see less chances for Arizona and Texas to pass the bill since it will be against on the US constitutional law to adopt another currency aside from the official currency. But let's wait and see if there will be constitutional law changes in the future which i think constitutional laws are more static rather than dynamic.

they are afraid El Salvador might pay their debt in full and can do whatever they want. this is what BTC can do for a country so small. if Arizona and Texas bills making BTC as legal tender as well be approved, what will IMF do to them as they are part of the US? 

it may be hard for Arizona and Texas to do make BTC legal tender but there was news about it and all these states are looking forward to making their state like NY or Wyoming making thier cities as BTC citadel.

Ofcourse legal bodies like IMF would be scared of that, if something becomes too big it turn into dictatorship. People trusting crypto will be huge backlash for their power so it kinda look natural they will hate  a country legalizing it.

If the price should go down at this point , it is nothing to be surprised about at all because we all know that this is a bear time. So, I wouldn’t be seeing it as a big deal when the price goes down. Although it’s quite bad that El Salvador came in at the wrong time when the market was at its bullish time, because we all knew that the market was going to lose its value after the bullish trend. That was for sure, never mind all those people who will keep on telling you that the market would not go down, rather it would continue to increase, which is not true.

Now that the market is down their government would now be facing a lot of backlash from the opposition and those who never supported the idea of making Bitcoin a legal tender in the country.

Even if they should revert their decision of making Bitcoin a legal tender, it doesn’t really change anything at all and it wouldn’t  be worth it all. Although I know that it is very much possible for them to do that and stop the use of bitcoin as a legal tender, but it would be best for them to continue with bitcoin as a legal tender. They are definitely going to benefit from it in the future when the time is right.

Although the problem now is what they would have to pass through right now that the market is very bad because of the decision that they have made in making Bitcoin a legal tender. All it’s going to require from them is to have patience and that’s just it.

El Salvador is the first experiment. If they have a success with this which is more than likely going to succeed, the whole world will also see its BTC that made them win and pay thier debts to IMF. All Bukele needs is the Volcano bond to have a successful launch which there is good support from the BTC business community and BTC to rise above as expected.

Any president of Latin country though who wants to free themselves from the chain of US though is going to be shot in the head. BTC o plomo?  

I have high hopes that Bukele is capable to address the problem because he is more just being real and optimistic about bitcoin. But we all know how unpredictable bitcoin is, so if it happens that bitcoin value will fall in the long run, does this mean the citizens will be the one to suffer all the consequences made by Bukele's leadership? This might be another problem then.

However, looking at the bright side, bitcoin is always making us proud every time its value goes to the moon. No wonder Bukele decided to entrust their country's trust funds into bitcoin. I believe this is just a passing issue, eventually IMF and El Salvador will definitely reconcile soon.

For sure they are already aware on this kind of thing on which this is part of the risk and they are fully aware for this thing to happen thats why they do take some shot
on making this as a legal tender thats why they wouldnt be shook off that easily because they do go for the positive ones and despite of the current condition you do
still have that kind of positivity in mind which is the most important but they should really be minding off about the responsibility of repaying those debts later on
and of course they do have already that in mind.

That is very pleasing to hear. But i doubt if El Salvador is already stable enough to stand on his own without making loans from IMF or any financing companies. Because as i have read, El Salvador is the fifth poorest country in North America in 2021 so most likely, creating loans can be a good option so that this country will start to take progress. In fact, investing in bitcoin added to their previous loans and currently, Bukele is buying more 410 bitcoin to add on their investments so that only means El Salvador is in need for a huge funds to sustain the country's progressive economic condition.

this would certainly be a disaster if the IMF really pressured El Salvador not to adopt bitcoin as we know that the IMF is a world central bank that is so influential on various countries we really hope that the government of El Salvador will not be affected by IMF pressure in the process. adopting bitcoin because currently it urgently needs adoption from developing countries if this is realized it can be ascertained that bitcoin will again decline sharply if they are continuously pressured by the IMF to refuse bitcoin circulation in that country

The likes of IMF refuse giving loans for a variety of reasons that have nothing to do with adopting bitcoin. If anything, its bad money, which doesn't even really exists and yet is used to extort whole countries.

Getting refused by the IMF after adopting bitcoin is something to be proud of. It is a clear message to the world that, no you don't have to depend on them and their schemes anymore. And this, is what that is all about, a country going independent of a despotic financial institution that everyone in Latin-America and the Caribbean hates.

The world will celebrate the closure of the IMF, WB, Central Banks, and finally fractional reserve banks. No more bubbles and crashes, just like the Austrian economists proposed a century ago, no more trash money, save your own money to invest instead of getting in debt and become a slave to them.

Bitcoin is independence and freedom.

There are many things that a Government pass into law in many countries that the citizens might not agree about but it will pass anyway because it is the government's decision and I believe that President Nayib Bukele and his team most have definitely thought about this whole process before taking this step and understands there might be hurdles but knew this is what was needed even though the citizens might not get it yet.