Bitcoin Forum

Source --> https://twitter.com/AFP/status/1486051087736094729?s=20

I don't want to be pessimistic but still El Salvador wasn't ready to adopt Bitcoin, now with the price dropping and the pressure mounting, do you think El Salvador is ready to continue to adopt Bitcoin as legal tender?

Let's see how the price will also react to more negative news. ;D

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UPDATE:  El Salvador Rejects IMF Call to Abandon Bitcoin as Legal Tender (https://news.bitcoin.com/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.

Tough times create real leader! I am sure Nayib Bukele is going through one of the toughest times of his tenure. He is the one, who had taken a revolutionary decision to make bitcoin as a legal tender for his country even after tremendous criticism within the country. He held on to his decision and didn't change his mind during this entire transition.

Now more and more criticisms are following in because the price of bitcoin has gone down! We all know bitcoin is an extremely volatile asset. If we look at the recent past of 2017 and 2018, we can easily understand the level of volatility. But when we are standing on 2022, it's impossible for us to buy bitcoin at the price of late 2017.

I want to see how much criticism he will have to face when bitcoin price reaches another ATH in next few years. IMF is a centralized body so it's not the first time they have urged El-Salvador to reconsider their decision and I am sure they will try even in future as well. But the time will decide the winner really! 

IMF mounting pressure on El Salvador to remove bitcoin as a legal tender does not mean the country was not ready or it was a wrong choice. The policies of the IMF has also been heavily criticized on several occasions, so I would not rate that suggestion very highly.

I am more interested in how much longer they would hodl their bought bitcoin if the price keeps dropping.

From what I know they cannot dictate what a country/government has to do (unless it's the condition for a deal, but here it's not the case).
Hence I expect Nayib Bukele see it as an opportunity to play macho and say he doesn't give a fuck on IMF.

The real problems will come only if El Salvador will get to the point they cannot continue without financial help from outside. Then probably Bukele will lose his position, the coins will be sold, and bye-bye legal tender. It would be an extremely sad story; it would be much worse than if bitcoin never was legal tender there and - if we get there - it'll probably be also in times the price is crashing (or crashed) badly.


The impact on price now should be minimal. Or course, some may have the ammo prepared for a bigger-than-expected impact. Because that's how wild-wild-west trading goes.

Bukele will probably not falter. With the image he created on the internet about El Salvador's stance on bitcoin, and seeing how deep they are in the crypto scene, they would not let the impression of the people change at all. I wonder how he will try to mitigate their losses on bitcoin currently, but sure enough he would not publicly state that they will sell at a loss because that's just bad money management (and bad for their image, too).

Ya, he seems to be at an all time high in clout, which seems to be part of his motivation.  Who knows, maybe the IMF will bribe him enough that life changing wealth means more to him then being a King of Clout.  I doubt it though.  He's riding high at the moment.

Interesting that the IMF has resorted to this though...  Maybe because they know that a second country is about to go on the Bitcoin standard and are now actively trying to stop this from eroding their influence on global finance.  The ball is rolling already though.  I expect we'll have an announcement on the second country to make Bitcoin a legal currency sometime in the next 3-6 months and that will undoubtably bring a new batch of coiners our way. 

better link to source
https://www.imf.org/en/News/Articles/2022/01/25/pr2213-el-salvador-imf-executive-board-concludes-2021-article-iv-consultation

the IMF fears bitcoin as legal tender. because if all citizens shifted their income, wealth, savings to bitcoin. then el salvador wont have any dollar to play with to settle the IMF dollar debt. thus el salvador could claim BANKruptcy. to write off the dollar debt, while not affecting citizens pockets because they dont touch the dollar.

the IMF does not want to give out more dollar loans if the country is not tied to dollar to ensure they pay it back.

what the IMF is not realising is el salvador wants to get away from SDR (dollar) dependency.
what the IMF actually cares solely about is increasing a countries dependency on SDR

Yea I'm not so sure El Salvador will pay too much attention to the IMF. It wasnt in the
IMF's interest at all that El Salvador made the move into Bitcoin and they got no
support from the IMF then.

I hope El Salvador stays strong and weathers all storms and bear markets until
the next halving in other words look to the medium to long term.

part of the announcement was triggered because el-salvador requested a SDR loan of 1.3billion and the IMF said they want to monitor el-salvadors dollar holdings and try to get el salvador to agree to a plan to reduce its debt (start paying dollar to the IMF)
in short IMF is afraid el-salvador will claim bankruptcy and cut all ties to the dollar, and never repay.

..
this IMF fear is based on many US cities* have gone into bankruptcy to write off US parts of national debt. which then means the US then cant pay the IMF SDR back because less cities are paying the us treasury back.
IMF fears if too many cities/micronations do this bankruptcy option. then the IMF becomes dead.

*The city of Detroit, Michigan,filed bankruptcy on July 18, 2013. at $18–20 billion,
Vallejo, California, $18 million debt in 2008
Jefferson County, Alabama's $4-billion filing in 2011.
Orange County, California, at least $1.5 billion debt 1994
San Bernardino, California, more than $1 billion in debt in 2012
Stockton, California, $700 million debt 2012

This is actually a big risk, he might be calling himself "world's coolest dictator", but if opposition will get control, which can very easily happen regardless of Bitcoin's influence on their economy, it would certainly mean Bitcoin will lose its status, maybe they will even ban it as some sort of overreaction, because we've seen how the opposition is criticizing Bukele's Bitcoin moves. So in some sense Bukele not only risked his country's money, but also Bitcoin's reputation, because if El Salvador will roll back Bitcoin's legal tender status, no other country would adopt in the next years.

From my perspective, having recently arrived in San Salvador, I think the IMF request is not unreasonable.

Bitcoin is not being used as legal tender here - it is a front for an Alipay-style centralised app and facial recognition database - and the experiment has more potential to do harm than good for bitcoin, and perhaps El Salvador.

As I understand it, El Salvador's policy has three main elements:
1. The introduction of the Chivo app;
2. The acquisition of bitcoin in FX reserves;
3. The issuance of the EBB1 bond and subsequent, related issues.

Of these, the first is not honest and not working. I haven't seen the app used here even once. The second is not going well, and a strategy of 'buy the dip' sounds unprofessional, but I think it can be prudently executed and the amounts involved aren't that significant. The third is the most interesting idea, but the devil will be in the detail.

In order to gain and maintain confidence in the bond issuance and FX strategy, suspending the Chivo experiment may be a wise move. At the moment, it wouldn't be a major loss and the only real question it would leave is who has gained access to the facial recognition database.

Its part of the challenges that you would really face when you do make it as a legal tender and as a leader or president then you do know the risk since the first place and this is the time
on which it did really happen.Of course there would be other sentiments which would really make out those reactions specially they do know a certain country did really make it as a legal
tender and suggestions and words like these will surely float around but still it would depend on the leader of the country would be having that final decision.

yes, media has over sold "bitcoin legal tender" as if el salvador has dropped the dollar. this is not the case. its instead added a second legal tender. adding options.
though at the moment the adoption and regular utility of this second option isnt much. the IMF fears the potential.
the potential is if the citizens moved their wealth over to bitcoin, and just stopped using dollar. then the IMF is screwed and wont get its debts to el salvador settled. though not a immediate threat. not a short term risk. the IMF is concerned about long term risk of long term loans not being repaid should el salvadorians prefer to use bitcoin instead of dollar

..
similar things were happening with UK/euro. because the UK didnt want to use the euro as a native currency. the euro banks didnt want to offer the UK euro loans. because if the UK is not circulating euro's then the euro banks have little chance of the UK generating enough euro to repay. thus allowing the UK a back door to exit out of by just claiming euro bankruptcy. whilst keeping the pound active for citizens in the UK

.. well then brexit happened and we left by another door. as we refused to join the euro, when asked again to drop the pound.

UK had a brexit. to cut ties with eurobank
i wonder if/when el salv' will do a IMF***off

I think they're ready for it. Bukele has been buying every time the market drops and that signifies that they're pursuant to what they're doing for bitcoin and which they've adopted as a legal tender. AFAIK, IMF is a bitcoin supporter and that's from the articles that I've read years ago, maybe 2-4 years ago and now that they're questioning El Salvador to remove what they've decided to adopt bitcoin as a legal tender, isn't it that this is just a FUD and they want to give panic to the people so that everyone's going to sell and pull the prices down?

IMF supports bitcoin and crypto for its utility.. but some IMF departments are the loan officers who are tasked to make sure countries repay their SDR debts. and its this loan office department that fears el-salvador trying to get its sovereignty back.

a lesson the IMF should do. is not want to peg/tie itself just to SDR(dollar) and instead have several vessels of reserve.
EG 'amero' 'brics' 'crypto'
where it can happily take in 3 designated currencies

EG
a commercial bank that only handles dollar, limits itself to a customer base of 320million people. yet a commercial bank that handles multiple international currencies has a potential customer base of near 8 billion.
so far the IMF is small minded trying to exagerate the dollars power/influence by trying to get all countries around the world to be tied to the dollar. even when in the real world only 5% of the world uses dollar daily

They may change their minds again once btc is going up. But can IMF dictate what El Salvador will do to their monetary system? This year, we will see how this country will stand on their ground towards their crypto journey. Maybe in the next months to come, they will disclose if they bought some BTC during this dip. Of course, they will be silent for now. But once the market is going bullish again, they may disclose what they have done during this period. El Salvador may be a living testament that btc can be a legal tender of a country if they play right.

yes
https://www.imf.org/en/About/Factsheets/Sheets/2016/08/02/21/28/IMF-Conditionality

in short when a country takes a loan. they are bound by the terms of the loan. such as a country has to then claw in enough tax income of the loaned currency to fill the government treasury of that currency. or has to offer the currency as social assistance to put it into circulation

thus making it dependant on that currency.

The IMF and the cronies running it are scared.  Of course they want El Salvador to drop bitcoin because it takes control from the surveillance state kleptocrats and puts it in the hands of people.  Does El Salvador want to eventually be free of the international control freaks or does it want to be under their thumbs in perpetuity?

The answer should be: keep bitcoin and give it time.  The IMF has destroyed countries world wide with the insane policies it has recommended, trusting them now is like trusting any fiat currency to retain value.  As inflation in the US showed last year, they can't do it.  Bitcoin can over time.

They are a huge organization that relies on dollars and so that's the reason why they're putting their trust in it instead of letting El Salvador do its thing alone, they want to intervene as it seems doesn't look for them. What's the matter if a country wants to adopt it as a legal tender and they actually have passed it and went through a process and made a bill for it. I think this is one of the reasons why many countries don't like to stand with these international orgs because they are trying to interfere with anything with almost everything.

Wall street and the central bankers are manipulating the bitcoin price and make a fortune with options trading because they are the ones controlling the liquidity now and can ripsaw the price in any direction to wipe out short or long positions but I don't think they will drop it much further however they are easily capable of frightening countries who adopt bitcoin without their blessing or appointed time to do so.

the IMF have nothing to do with "trusting the dollar". their game is to set terms and conditions on countries that take loan dollars that allow the IMF to try punishing a country.

EG imagine(in simple human fiat terms)
 you took out a bank loan at 1% interest, but the terms&conditions was that you had to prove you worked for an employer paying you dollar to stay at the 1% rate. if found that you accepted euro income your interest rate becomes variable. and you also can have other penalty fee's added.
imagine on top of that you had to ensure that because your house was the collateral. you had to use 50% of the loan to renovate the home and pay your kids in a weekly pocket money allowance in dollars.
all of this is to try keeping you tethered to the dollar and need to generate MORE dollars to stay afloat and repay the loan.

what they dont want is for you to just start earning euros and claim dollar bankruptcy while holding euros offshore out of their jurisdiction, thus unable to seize your euro wealth.

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yes the IMF should get out of the game of trying to make it appear that the dollar is no.1 power/dependant currency. realise only 320m of 8bill (<5%) actually use it.. but then the IMF wont want to advertise that china and india are the actual big players. circulating their currency through billions of people(>12% each)

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heck im in the UK and i dislike that bitcoin exchange rate values bitcoin against the dollar. where the UK exchange then 'follows' the US rate, by looking at the forex and converting to then show a UK price..  rather than the UK have its own independent rate.
heck even stable coins are $ denominated. rather than having multiple stable coins for pounds, euro's etc.
so even the bitcoin exchanges has become dollar sheep.

if the bitcoin exchange was not so US centered. people could see a change in the forex rate. and buy bitcoin. sell at dollar rate then use dollars to arbitrage a USD to GBP. and through this arbitrage, bitcoin could actually ruin the wall street forex rate of dollar by 'selling' all the dollar for pounds. thus crashing the wallstreet dollar forex market.
but due to fears of influence. bitcoin exchanges dont do this, so stay 'happy friends' with us government.

imagine if in 2011 when exchanges first started. all exchanges valued bitcoin to chinese Yuan instead.. the US government would not be happy

Media aren't alone in the misrepresentation, and the problem is that a second legal tender hasn't really been added. The app defaults to USD, limits or makes bitcoin withdrawals outright impossible and provides no infrastructure for decentralisation. It does little more than create a platform that could easily be adapted to any CBDC or basket of CBDCs, as well as an extensive facial recognition database.

If the use case is increasing remittance income, that's more understandable, but you'd hope that any country would be attempting to minimise dependency on that revenue stream. The absence of young people here is striking.

I continue to believe that mobile-first lightning development is a net negative for bitcoin. At this point, my order of preference is:
1. Bitcoin for long-term savings
2. USD cash for spending
3. USD debit card for spending
4. Full-node based Lightning on desktop, non-LND implementation
5. Lightning mobile apps tied to ID/facial recognition (I don't want to use these at all)

i have my own thoughts on the issues with el salvadors lightning use app instead of a bitcoin wallet.
i wont go into detail as many people of a certain group will come advertising their LN utopia's

but yes bitcoin is legal tender. and while utility of adoption is slow. especially of actual bitcoin acceptance(savings on bitcoin wallets) it is atleast one half step away from the dependants on the dollar.
(once all these covid travel restrictions calm down. i was planning a trip to el salvador to see how things are and what can be done to progress things)

however huge leaps to just cut off any dollar utility and make everything measured in bitcoin is not going to happen. but atleast giving people a address they can tell their relatives aboard to send funds to can bypass the US$ banking remittance headaches. as an extra option

its not something that has been around for years. it only became law in september (4 months ago) so it will take time.

heck the UK has taken 4 years to get from voting on brexit to a point where it actually activated. and then another 2 years to get used to all the law changes of brexit.. yep 6 years since the vote and its still not settled/normalised

so it will take longer then 4 months for people to get used to having another option. .. baby steps not huge leaps

I disagree. This is a warning and this should never be underestimated. The people who are behind our present monetary system are ruthless and cold blooded monsters. They will do anything to protect the exisiting state of their monetary system. Bukele’s presidential term will end on 2024 with a chance to win again on the next election for another 5 years. It would not be very shocking if we witness a coup d’etat or something worse unless El Salvador removes legal tender status. Those cold blooded monsters work on a different set of rules.

However, if Bukele does not listen and the countries in all of South America unite under the acceptance of bitcoin as legal tender, the IMF will begin to be running it scared hehehehe.

There is certainly inefficiency in remittances and that's an opportunity for bitcoin, but it's naive to think that all KYC/AML is unnecessary and open borders are the answer to every problem. Again, I would hope that the intention is to reduce dependency on remittances by creating opportunity through projects like EBB1.

Lightning is certainly not ready for any nation-state use as primary legal tender. What's more concerning is that mobile-first development will lead to greater network centralisation and a lack of full nodes to balance the extra usage. That's partly why I think the IMF request is not unreasonable, and may be a benefit both to El Salvador and to Bitcoin.

I found a shop here selling the Raspberry Pi 4 B and asked if sales had gone up since the introduction of bitcoin. The question was met with a blank stare and a no.

El Salvador is already into deep with BTC, they will back away from the use of BTC. What would that make Bukele if he suddenly stops using BTC?

He'd just treat this as an insult from IMF. He wouldn't bow down to IMF again. No one can stop them because they can also use the stablecoin in crypto or they could be looking at what the Caribean Islands is using which is a CBDC.

This is an almost predictable move by the IMF and only reinforces that the organization is uninterested in creating a level playing field for developing nations. Fortunately El Salvador has a strong-willed President in Bukele who won't buckle to this pressure. The IMF and international community should just let El Salvador continue with this experiment and see if it's viable for other nations before issuing this type of rhetoric.

El Salvador should be an excellent study for the world's financial institutions in dealing with bitcoin and crypto.
how the results and development of this country with the adoption of bitcoin there. whether it will be a more advanced future financial solution or vice versa.
looks like the IMF also lost their experts. or those who are starting to fear a more modern financial system.

Should El Salvador eventually drop Bitcoin as a legal tender because of the mounting pressures from different sides including IMF...this can be a sign that Bitcoin is actually a failure as far becoming a currency for a nation. We have to understand that actually there is no avalanche of people in El Salvador that are holding big amount of BTC...most are just getting the minute giveaway from the government so it is the government that is losing the value of its BTC holding...and of course they can lose only if they let their BTC go or be sold in today's price. I would be sending Bukele a big card of congratulations if he will not listen to naysayers waiting for the time when BTC can be rebounding - and it will surely come back just a matter of when not if.

I waited to see how this unfolds, but it seems like that huge drop a few days ago was already away too much and caused by nothing in reality so the obvious bounce negated everything that could have come from this.


The real problem is already here and despite Bukele playing macho on Twitter, in reality, Salvador is still discussing with the IMF a 1.3 billion loan, that on top of the 400 million bonds they've issued in December to cover the current deficit.
Bukele right now is acting as any politician would have to do, in public, he posts laser eyes and says fuck the IMF in order to secure help from cryptocurrency lovers for his 1 billion bonds and to gain media support, behind the door he negotiates with both the IMF and the US to get along and the continuation of the USAID program.

Everybody right now needs money, there is almost no country without a stringent need of funds and Salvador is in a peculiar situation, they can't print their own, so the only help they can hope for is either temporary with loans or through investments but that will take too much time.
Bukele is trying to solve the cabbage goat wolf problem as he runs out of time.


If the IMF is that scared and Salvador wants to be free, why does Salvador still insist to get a loan from them?

It is what it is, pressures from a entity that wanted to have control of countries. They want El Salvador to be dependent of IMF that's why they are putting a lot of pressure on them.

I just hope that El Salvador or at least the current sitting President will not give up on Bitcoin. This is just the beginning, yeah, tough times because we are in a bear market, but who knows, maybe 2-3 years from now, their investors will grow X folds.

This has been a repeated call. But it seems the president is adamant on his government's new policy.

I don't understand the IMF, though. Why do they have to treat the country's adoption of Bitcoin as a big deal? It is not as if the country of El Salvador is ditching fiat for Bitcoin. It is not as if El Salvador is removing the USD as a legal tender. The USD is still the country's official currency. Bitcoin is indeed a legal tender but it is probably there playing the role of an alternative. I haven't been there myself but I doubt it's acceptance is widespread across the country.

Woah. :o Then it won't be easy... :(
IMF is hard to convince out of their conditions - possible, but hard. I am curious what can he sacrifice to keep them happy.
I really hope that my worse expectations there won't happen.

Tell me about,  IMF is the total opposite of what they represent, Bukele should have known better than striking a deal with that stringent organization, they do more harm than good to the economy of a small country like El-Salvador,
Surely he will have to sacrifice something damaging the already fragile economy because in the end those conditions must be met. He made a wrong move.

My question is will every other country that attempt to adopt btc as part of legal tender face such request from the IMF or this request is as a result of an ongoing commitment of El-Salvador with the IMF group?
Because if this is the case, I think this can pose a problem to countries who have similar intention in the future and can also be a big barrier to the mass adoption that the btc community so desired, I just want to understand the situation much better.

I'm not sure what you're expecting from IMF, but I've read some years ago an interesting view: IMF are basically some accountants handling a huge pile of money for lending.

So they care most about the numbers.
And whether we like or not Bitcoin, an accountant will see those coins only as money spent.

If Bukele can convince them he can get the numbers right, if he can convince them that this and that investment will produce money, if he can reduce other costs here and there, he has a chance. A small one, but it's there.

Wrong move? Yes and no. If, as an extreme (and impossible) example, he gets the loan, invests it all into bitcoin, and we get then to new ATH. He can sell and be on a healthy profit.
USD has its own inflation, pretty big actually, and because of that the actual value he has to pay back may be even smaller after some years (especially as the interest is usually rather small).

The problem with IMF loans is the cost in tasks/checkpoints to be achieved and the signals sent to the fiat finances if such a deal is not made (resulting in higher costs for other loans they want to get, resulting in lower rating hence less investments coming from rich countries). And this gives IMF an unnecessarily big power.


Let's see if IMF will succeed in this. Let's see if other countries will adopt Bitcoin as legal tender. Let's see if those will also have the economy in deep shit and need help from IMF or not.
But as a good rule.. we don't have the crystal ball, hence let's wait and see.

Probably not much.
If it were for the IMF to actually stand by the requirements nobody would get a loan, poeple who arrive at the mercy of the IMF are the ones who can't get a loan normally and their debt is usually trash, and this is where it gets polical.
There are counties who own debt, who own business, and who would put pressure on the IMF board to give them money not to see them defaulting, at least the losses are distributed among everyone, then there are the allies who can't afford to help them financially but can put a bit of pressure in the decisions and in the end, everyone gets the money and everyone knows that it shouldn't have happened.

As for Bukele, he will never give up Bitcoin, he can't. Once he doesn't have Bitcoin to brag about, he's a nobody, an Alejandro Giammattei or Orlando Hernández, and I bet not even 0.1% of the users here know who there are guys are, I didn't either so I had to look on the wiki for the presidents of Salvador neighbor countries. If Bukele gives up BTC he loses everything, he will have nothing left to be in the spotlights he loves so much.


It's pretty simple, the IMF can't impose on you anything unless you want money from them, if you're that desperate and you can't find another source for a loan on international markets then there are a lot of things you should fix first.

I think the decision has already been made after careful consideration and evaluation have been taken before El-Savador finally decided on adopting Bitcoin as a legal tender, firstly it would have been a pity if the adopted currency wasn't Bitcoin but altcoin and knowing fully that Bitcoin is the first and leading coin of all digital currency.

We can also look from the angle of what if Bitcoin rises above $69k breaking the all time high record, what i sense here is that the type of El-Savador's economy running system Will also be volatile (unstable) and of which I know its part of their considerations before the adoption since individual has it full independency on what rate, how and when to sell or buy their Bitcoin. The fate of El-Savador's for deciding to adopt bitcoin in later future will go along with the tremendous success of Bitcoin in years to come.

I don't know what the purpose of the IMF is to remove bitcoin from el Salvador, but I think they have a goal for el salvador to continue to depend on the usd currency and also to the IMF, I think after el salvador commits to continue the legal tender status of bitcoin it looks like the IMF seems very fear if salvador can be successful with what they have been doing, and actually that made the IMF even more heated when Bukele planned to issue $1 billion Bitcoin-backed bonds.
As a world bank the IMF should have understood the alternatives that salvador took to improve their financial condition , currently the IMF only plays a role as a world bank that provides loans to Salvador and if later the adoption of bitcoin by Salvador is successful and is able to pay off their loans to the IMF, isn't that not a problem at all?

IMF gives loans to underdeveloped countries with tough terms and conditions. Since the underdeveloped countries need finances to stand themselves, they take the loans with high interested rates. Once the country takes a loan, it will become the slave of IMF because now IMF can impose any rules and regulations in the country.

El Salvador should not be threatened by these IMF orders and try to establish itself. For sure, with bitcoin, they will become independent of IMF. Also, the current bitcoin dump is temporary and soon bitcoin will be available at higher rates.

IMF knows that a country under only dollar utility, a countries GDP growth is only 1-5% a year. meaning countries cant really pay off a debt in a couple years by doubling GDP in a couple years. meaning IMF influence lasts for decades.
they dont want debts to be paid off. they want continued controls. so that the 'invested' countries can sanction and demand a country thats in debt.

however if a country buys say $200m of btc at $35k and the price reaches say $86k in 2 years. the country then has $491m to pay off its $287.2 million IMF debt. and still have $204million in spare value to return to the citizens

It is hard to know if El Salvador will continue to adopt Bitcoin as legal tender after the bearish price and some pressure from the IMF but I believe the pressure of the IMF can't influence the stance of El Salvador about Bitcoin legalization. However, the only thing I believe that would change the El Salvador stance is the bearish market but it also depends on their understanding of the Bitcoin market trend.
If they understand the bearish will always happen and well prepared for it there's no reason for them to remove is Bitcoin as legal tender.
I believe the bearish was the reason why IMF advise the removal of Bitcoin as legal tender.

Some people are saying if bitcoin go bearish that Michael Saylor and El Salvadorian president can change their mind, but what people do not know is that both of them would have known about bitcoinn very well before starting anything about bitcoin at all. What they are looking into is the long term, they believe bitcoinn price will increase in the long term. About IMF, I do not think El Salvador is concerned, they support bitcoin as a legal tender but is not imposed on their citizens, El Salvadorians can accept payment in US dollar.

IMF flexing thier muscles to a country that is trying to BTC as curreny

https://www.bbc.com/news/world-latin-america-60135552
https://www.voanews.com/a/imf-urges-el-salvador-to-remove-bitcoin-s-legal-tender-status-/6412887.html

It shouldn't be an issue for IMF after all El Salvador still is currently using USD. They are not totally trying to forget USD so it shouldn't make them mad aggressively. IMF is just urging the country to remove BTC as legal tender. If Bukele doesn't listen, it will turn into a warning. This will be a test of how long IMF can stretch their arms to strangle Bukele.

El Salvador were probably jumping the gun anyway rushing into making it legal tender.They probably should have just bought some bitcoin for reserve and watched things play out but someone has to be a first mover I guess so hats off to them.

This is issue to them knowing that there are countries that look at it to make bitcoin as legal tender to their country so I guess this is simple message to other country that they shouldn't try to follow what El Salvador did since they will face the same consequences on what they plan to do with them if El Salvador governmemt will not follow. Hopefully they can come up with better agreement and bitcoin will not be eliminated as legal tender on their country.

I think Nayeb bukele will not waver, even though the IMF urges El Salvador to prohibit using bitcoin as a legal currency, even though we know that the IMF is a large institution that involves many great countries under their auspices, such as the United States of America, I am very optimistic that Nayeb bukele will still stick to his position.

Very interesting, maybe they will give several warnings with various consequences if they do not comply. But if they are really serious then Nayib should not change his decision. Nayip has known all the risks that he got from not complying with the rules of the IMF. I'm really curious about what El Salvador will do next. They were the first nation to dare to make a spectacular decision would they stop halfway? shouldn't be, from some reports that they have bought some bitcoins during this bearish period. I think it signifies that they are constantly trying to multiply their Bitcoins. Let's wait for new news what Nayib will do.

President Nayib Bukele has stepped in with confidence that investing in bitcoin will bring profits in the future, although it is currently experiencing a decline but is still buying back.
If you look at the current situation, indeed everyone thinks that what they are doing is clearly detrimental, but what they think about is the future, where they hope that it will bring benefits to their economy, so they can pay their debts (IMF) and there are advantages that can be used.

It does require a fairly mature thought in dealing with things like today, because many are cornered with very brave actions. but all do require sacrifice and no exception to the negative news that continues to happen over all of this. High trust really needs to be appreciated and will not relax what will be the goal later.

If El Salvadors gamble pays off they will be infamous among the Bitcoin community as pioneers and then hopefully they will reap great rewards in the future.I hope it works out in the end.Fortune favours the brave it is said.

IMO, It's not surprising because in the very beginning IMF was always saying negativity about Bitcoin and even mounted pressure on El Salvador to remove Bitcoin as a legal tender and I think IMF will not stop until it will succeed because they have a sphere of financial influence since IMF is a creditor and Im sure El Salvador has also debt and liabilities in the IMF so it was a complicated story but let us wait what is the next action of El Salvador leader about this issue.

There is no chance they will just randomly abandon Bitcoin. The country has been buying up Bitcoin to hold as national reserves, they've already implemented Bitcoin at point of sale in much of the country, they've already began mining Bitcoin with geothermal energy, and they are planning on making Bitcoin bonds to help finance a 'Bitcoin city'.

What of that sounds like they are going to abandon Bitcoin just because some outside organization wants them to?

The president recently tweeted about buying the dip and getting really cheap Bitcoin. He's not going to abandon Bitcoin. He has a healthy long term view of Bitcoin. The only people worrying about El Salvador's adoption of Bitcoin are people don't have long term vision and think that every time Bitcoin dips it means Bitcoin is dead. As soon as Bitcoin's price goes back up all this talk will go away because it is entirely based on the naive idea that when Bitcoin's price goes down that means it isn't good anymore (as if these people have zero understanding of how markets work).

It is very unfortunate that the IMF is blackmailing El Salvador by denying the grant the country was looking for in order to try to get El Salvador to abandon Bitcoin. The IMF is only hurting the citizens of El Salvador, while Bitcoin is helping them - showing clearly who the 'bad guy' in this scenario is.

Fact is that El Salvador has leap frogged the rest of the world to now have the most advanced monetary system of any nation in the world. They aren't going to abandon that just because an organization wants them to. If anything this will probably lead El Salvador, and other nations, to go more toward Bitcoin because it is clear the fiat powers of the world require complete compliance, and Bitcoin is the escape hatch out of that oppressive system. I expect in the next 3 or 4 years we'll see several more small nations that don't have their own currency follow El Salvador and adopt Bitcoin as a co-legal tender with the dollar or whatever currency they use now.

As Bitcoin's price rises long term the mainstream narrative will change from 'this is going to be a disaster' to 'amazingly this worked out' because the wealth of El Salvador and its citizens will increase thanks to Bitcoin adoption. It takes a very short term view ('oh look prices are down now, what a mistake this was!') to not see Bitcoin adoption as a great move for El Salvador. Modern finance and politics is all about short term vision - the next quarter's earnings, the next year's gdp, the next election, etc - which is a fundamentally flawed way to view Bitcoin adoption. El Salvador isnt day trading Bitcoin lol, they're not trying to make a quick buck and therefore blew it since the price is temporarily down. They made a long term change to their monetary system and economy, whose benefits will only grow with time.

Also, by being the first and so far only nation to adopt Bitcoin, El Salvador will get a lot of investment from bitcoiners. Some people will move to El Salvador to take advantage of the fact that Bitcoin is classified as money there and therefore not taxed as capital gains. Some will simply invest to help grow El Salvador's Bitcoin footprint and therefore helping the further adoption of Bitcoin at a national scale to other countries. Some bitcoiners, and we have already seen plenty of this, will go visit El Salvador precisely because it has taken this revolutionary leap, and they may go visit the nation many times and regularly, because they can take part in a Bitcoin economy there and support the country's adoption of Bitcoin with their spending. There are a ton of positives for El Salvador's adoption of Bitcoin, the only downside is the fiat powers of the world will try to bully El Salvador to come back under their control. But it is clear the current president is set on continued and increasing Bitcoin adoption. The next presidential election in that country is 2024, with each term being 5 years, and the current president is very popular so he will mostly likely be serving until 2029, by which point the benefits to El Salvador of adopting Bitcoin will be obvious to even the most fervent uninformed Bitcoin haters, so it would be political suicide for the next president to reverse course on Bitcoin, and besides, that would require their legislature to sign off so even then a bitcoin hating president wouldn't be able to do anything because everyone else (the legislature) wouldn't want to abandon Bitcoin.

from the start, I was sure that the president of El Salvador had preparations when facing a bear market...

it is not easy to convince the public when it comes to money but if El Salvador gives up and sells now then they don't deserve to be a country that makes bitcoin a legal tender. pressure from the IMF is certainly not easy to deal with, but El Salvador must be able to stay firm and strong.

They had endured that first adoption bumpy or rocky start.
https://www.reuters.com/business/finance/el-salvador-leads-world-into-cryptocurrency-bitcoin-legal-tender-2021-09-07/

Do we really believe that this current condition would be an enough reason for them to panic sell?I dont think so yet they are already prepared for this situation.
We hadnt seen any news or sentiment in regards on what happens on their portfolio but rather decide to be silent.

In my understanding, El Salvador is ready to keep Bitcoin as a legal tender, see the optimism in president Nayib's statements.
Anyway, deciding Bitcoin as a Legal tender is fully the responsibility of El Salvador and it becomes their right to decide legal currencies to be adopted in their country. This should not be intervened by any party including the IMF because it involves a domestic affair. President Nayib must be aware of the possibility of a bad scenario after he declared BTC as a legal tender, he probably predicted that there will be a protest from the world financial institutions like IMF. So, he won't easily discontinue BTC as a legal tender although IMF has urged him. Except, almost all the citizens of El Salvador protest about it, then president Nayib may consider discontinuing it.

Regarding the price drop, it won't be a strong reason to discontinue it. President Nayib isn't a newbie who doesn't know about the downtrend and uptrend in Bitcoin. He won't be in a panic and change his mind to exclude Bitcoin from the legal tender. He must have some experts to consider the precautionary measures to overcome the adverse effects during the huge price drop.

In several threads I have been observing that they speculate about the situation in El Salvador as the worst of all, but they forget that he is the first president who had everything that is required to go against many to implement BTC as currency. legal, they are also not taking into account that that president had to have taken measures in the face of a bearish market, we do not know if Bukele has an amount of BTC in leveraged short and if all this time the bearish market was profitable, we do not know... .

I believe Nayib Bukele knows what he is doing and will not be affected by anything the IMF says. After all, since the beginning the IMF has continued
to oppose the presence of Bitcoin, it's no wonder they always have negative thoughts about Bitcoin. Only people who have knowledge,
understand Bitcoin situation now is not as bad as imagined. Even Bitcoin has experienced much deeper declines before, so the Bitcoin price drop
now is not something to worry about. And I believe Nayib Bukele as president of El Salavador will not remove Bitcoin as a legal tender with
a declining Bitcoin price. El Salvador will use the current Bitcoin price drop as an opportunity to buy more Bitcoin, and can get a big profit in the future
if the Bitcoin price at least returns to the ATH price.

Therefore, it takes a strong belief in the future of Bitcoin, to be able to survive from the negative news that keeps coming. I believe from
the beginning of El Salvador investing in Bitcoin was for the long term, so I believe the current Bitcoin price drop doesn't change their decision.
Hopefully El Salvador can prove to the IMF that its decision to legalize Bitcoin as a legal tender is a good decision, and can awaken other countries
to legalize Bitcoin as a legal tender as well.

It will be similar to what occured during past administrations in many different 3rd world countries. The IMF will use politics and support Bukele’s opponent in the next presidential election. If the opponent wins, the new administration will amend the law and remove bitcoin’s legal tender status as ordered by the IMF. The IMF will then give billions in loans to El Salvador in exchange for more political control and more control over economic policies of the country. However, if Bukele wins the next election, we might witness rebellion to oust Bukele to increase. I will leave it to the reader from who the funding of the rebels come from hehehehe.

using the opposite argument
in 2015 NY officials implemented the bitlicence. and now in 2022 the new mayor of new york wants to repeal the bitlicence so that NY businesses can operate without the silly licence, thus opening up more utility for bitcoin acceptance

yet the imf are not threatening america

yes the IMF fear that el salvador can easily 10x its bitcoin investment and pay off the debt, thus not be committed to IMF conditions. and not require future loans, thus freeing el salvador from IMF's grip/strangle hold.

but as long as el salvador pays its quarterly loan amounts. IMF cant do much about it bar increase interest rates of future loans or charge penalty fee's for not reaching conditioned obligations of future loan agreements.

the IMF current loan conditions have no clause related to crypto. so current loans el salv' owes are not conditioned on bitcoin usage. however the IMF are trying to put any new loan to havea non-bitcoin clause.

if el salv' takes the loan. then el salv' would then have to comply or be fined/penalised. but right now without accepting a loan with a non-bitcoin condition. el-salv does not have to comply or be penalised for using bitcoin

So El Salvador starts thinking about dumping US dollar in favor of bitcoin and an American institution in Washington D.C. starts pressuring them not to do it and you think it is has anything to do with them not being ready to adopt bitcoin?!! Quite the opposite, it is all about US not wanting to accept that their currency is losing the position it once had in the world.

el sal' wont just stop using the dollar. there wont be a "dump". but yes the $power players want the US dollar to have power, so they fear countries that can still use the dollar but not be a slave to the dollar.

its not about dumping the dollar. its about not being a slave to the loan conditions(power) of the dollar.

..
take any loan example.
banks love giving loans. especially to those that can only just about afford the repayments. it makes the receiver dependant on the loan not defaulting because they will lose their house. job etc.
those that can afford to pay off a loan the next day but just use it as a temporary credit line. are not in fear of loan conditions. and banks hate that. they hate people that can pay off a mortgage early/easily, because then they cant charge them late fee's or increased interest

The IMF will always come up with such statements and like the country will not get any help from them if they don't halt the btc usage but in reality they won't need them if the position is hold for some years and this is what they fears the most.The President will never step back and have strong plans to hold and invest more in btc.He is young and visionary and seek btc as best source for the country's growth.What progress they have made with the IMF funds? But with btc they can beyond imagination and their financial freedom from USD.

IMF does not have the powers to reverse El Salvador's decisions of bitcoin legal tender. IMF can only advice or encourage them to do so.
This becomes a problem because El Salvador as a country is not financially stable. They will always run to IMF and other monetary organisations for help. Then these bodies cannot help her if they are unsure the money would be well utilised and returned in such a case.
As an individual, I may not be able to lend you monies if I don't know how to get it back.
Bitcoin is highly volatile. It is quite unfortunate El Salvador adopted Bitcoin when it was on ATH. But, Bitcoin never fails.

in some aspects maybe it was good thought to make BTC legal tender, i think it is too soon though in the game to use BTC in that way. Still something new. still lots of opposition out there. Also BTC does have it's flaws as well. I am thinking the right crypto that could be used a as mainstream money for using to get goods and services has yet to be created. BTC by itself may not really be the main answer, just yet.

I am thinking the situation, it does take some time to see any positive results when someone tries to make a change to something completely different.  Using BTC as legal tender  could take over 5 years in use till the positives could actually be seen or noticed. It has only been less then 6 months. too early in the game still. However I am thinking the idea will falter and not be in favour. El Salvador maybe see a economic collapse and the president will get blamed for it. Which in turn will create more opposition for BTC in the world by many.

they moved forward way too soon in my thoughts, then again maybe I could be wrong, but the final answer is not there yet.

Only noobs would think El Salvador is in trouble. The same kind that sells in panic when the price goes down.

It seems to my eyes, that Bukele is not one of those noobs. There is no loss unless you sell, and for a country's reserves, you rarely sell.

So no matter what some foolish bankers say, El Salvador is free of them, and that is their greatest worry. Their jobs are on the line now.

When El Salvador emerges as the wealthiest country in the region, who are those bankers from IMF going to convince next? A domino effect of world wide rebellion will occur, that is what they fear the most. The power struggle of those who can manipulate money, vs those who can't.

Banks with their fractional reserve practices, central banks invented solely for this perverse mechanism, and the International Monetary Fund and World Bank who is composed from people from said central banks.

The whole current economic model is fading to finally enter the principles of the Austrian school of economy, finally after a century of bubbles and crashes that could have been avoided, perhaps the world will face a few more before finally giving up (or the old people passing away).

For example the final collapse of the USD could prompt people, to finally stop giving doubts to Bitcoin. I'm afraid for the vast majority it is too late, they believe their politicians would never fail them, but fail they do.

America has now the worst inflation in half a century, and they have seen nothing. Keep printing for "social aids" and you repeat the same mistake others did in history. Having a better economy gives you some more leverage, but nothing is infinite.

A politician always wants to be a protagonist, they feel they are actually "saviors" or something. Why do you think the Austrian economists were ignored for more than a century? Because the politicians hated being told: get out of the way and leave the economy alone.

When you know the correct thing for Biden is to drop the money emission, how can they accept it? And this is how you end with a situation like that of Venezuela, Zimbabwe, or Yugoslavia. The fact that politicians have the power to ruin everyone's wealth "in the name of helping those with need" (why not take from the military spending then huh?).

Inflation is the worst of taxes, and you must know its especially perverse when its the politicians with the bankers doing it in collusion.
Bitcoin destroys this, forever, and they hate it. That is why they have a worldwide FUD campaign, nearly ALL central banks are doing the same.

Their biggest fear now? Where is the next country to declare Bitcoin legal tender. And the domino effect this will trigger, especially if the next crisis makes them islands of wealth.

punishing El Salvador for wanting to have economic sanctions seems too much but it's what big economic bodies do like big banks. they don't want you paying the debts you have. not sure if they are sanctioned already from the SWIFT network but they may be if El Salvador doesn't comply with this IMF demand. this compromises El Salvador's economic freedom. Nayib though is not worried about it. in his reply was a meme on tweeter pushing IMF away.

I believe IMF was against El Salvador adopting Bitcoin before and refused to help El Salvador with that. So nothing really surprising is happening here, and I don't think it'll change El Salvador government's policy because they knew the IMF was against it and adopted it anyway. I also think that IMF would be better off working on accepting Bitcoin into their system, treating it as another form of money they can work with. In the meantime, El Salvador has chosen its path, and it seems that they've been withdrawing from their reliance on loans from them for years and are currently not dependent on them. So IMF doesn't have much leverage here.

It can change their stand if IMF push to ban their country on their list since we know how useful the IMF in terms of financing since it has a huge plays a huge part if El Salvador want to lend some money to use on developing their country. This is totally bad if this happen so hoping that they will not turn things down and their government decide to revoke their adoption on bitcoin.

In a statement following a meeting Tuesday, the IMF cited "large risks associated with the use of Bitcoin on financial stability, financial integrity, and consumer protection, as well as the associated fiscal contingent liabilities." https://www.dw.com/en/imf-urges-el-salvador-to-drop-bitcoin-as-legal-tender/a-60559687

This is just an advice for El Salvador from IMF to drop bitcoin as a legal tender because it's really disappointing to see that the country right now is facing a huge debt because they decided to buy bitcoin when it was in its high peak. Although it is said that El Salvador is also buying more bitcoin in its dip, but the fact is that El Salvador is still not making a huge progress that they can't rely for loans from IMF in the future.

I think El Salvador didn't adopt Bitcoin because of the price, if that was the case it won't be am adoption in would be an invest not an adoption, so I think if El Salvador has done their home work well before adopting Bitcoin then they should know that Bitcoin is volatile and this price swing is Normal, and also except they are breaking any rule I don't think IMF has any thing against El Salvador and they can't force El Salvador to go against their earlier adoption of Bitcoin.

The IMF is basically proof of stake, where the big players get richer, and the small players get poorer.

How does it work?, first the IMF generates a certain amount of SDR out of thin air:


Then, they distribute those SDR to their members. This is how it's distributed:


The quotas for each member are available here: https://www.imf.org/en/About/executive-board/members-quotas

Here are some examples:

• United States: 17.43%
• Japan: 6.47%
• China: 6.40%
• Germany: 5.59%
• United Kingdom: 4.23%
• El Salvador: 0.06%

Moreover, interest is paid to countries that hold SDR, and interest is charged to countries receiving a loan.

Here's a list of countries with loans from the IMF: https://www.imf.org/external/np/fin/tad/balmov2.aspx?type=TOTAL

Here's an interesting view from the 2015 congressional report titled: Bitcoin: Questions, Answers, and Analysis of Legal Issues (https://sgp.fas.org/crs/misc/R43339.pdf)


Basically the IMF is not able to acquire Bitcoin. That's probably one of the reasons why it doesn't want El Salvador to keep it as legal tender.

I don't think El Salvador will be intimidated by the IMF in any way. The country's president really knows what he's doing by putting his faith in a decentralized cryptocurrency. Backing off now, would be giving up to the bankers. Pressure will continue to mount over time, as banks don't want to lose dominance in the mainstream economy. As Bitcoin's price continues to increase, El Salvador will be one step closer from transforming itself into a developed country. I'd love to see how other countries will react after they see El Salvador becoming successful in the future. The more countries join the Bitcoin revolution, the faster banks (and the IMF) will lose traction. Who knows if this will lead us to hyperbitcoinization in the long term? Just my opinion :)

If they can find some way to resolve this problem then you can say that they really are not joking about their implementation of bitcoins in their country. I think they already have some plans to counter this problem and they will try as hard as they can to resolve and further strengthen their vision towards the future with Bitcoin. They're just facing a common problem as an investor but the only problem is they are a whole country and all eyes are on them watching closely if they can survive or totally collapse with their dreams.

This is what I believe challenging Bukele's leadership. Since people around the world know that they are the first country to accept bitcoin as legal tender, all eyes are on them. So some of them are just waiting for their failure. And in this case, I don't think Bukele will give up that easily even if it is IMF calling for reversal of their action. It will be more of a challenge for them and will continue to show that they haven't made a mistake when they announced bitcoin as legal tender. They will find ways on how to exhaust all their means to support and make crypto market stronger in their jurisdiction. So I don't think they will just follow the advise of IMF or any other organization.

It may take a while before things could escalate between IMF vs El Salvador. It's always what happens when they encounter a country that is not obedient. So the question is that is El Salvador capable of protecting thier president whenever there is a coup to dethrone him or simply assassination?  That's not even the worst that could happen.

El Salvador is really creating something that will make other countries follow like that Volcano bonds. If IMF is determined, IMF would also have to stop this project.

The International Monetary Fund (IMF) does not want El Salvador to use Bitcoin as legal tender, because they want them to stay with the US Dollar, so that they can loan more money to them and thus control whatever they do in their country. (Their power come from the control they have with the loan sword they have over these countries)

They threatened El Salvador just after they made the announcement that they would adopt Bitcoin as legal tender, that they will not loan more money to them, if they do that.  ::)

You are right and I wasn't suggesting a total dump, at least not in near future specially from such a poor country. But even a small dump, like if people used 10 bucks less in US dollar and used an alternative for it, causes mass panic among US policy makers. Because they know where the world is headed and how US dollar is going to become obsolete in the future, so they try their best to postpone it as much as they can.
This is also why some 3 letter agencies became super active in El Salvador right after bitcoin adoption and they even orchestrated a lot of attacks on their infrastructure including the ATMs.

What can the IMF do if El Salvador will still continues to use bitcoin as a legal tender?

They made their decision, they already adopted bitcoin and they cannot just easily change it because of what IMF says.
It's their personal decision and before they consider bitcoin as a legal tender, they already had a series of studies to know how it will benefit their economy and their country overall. Besides, it's not only bitcoin that is considered as legal tender in their country, they always have an option.

Honestly, IMF has nothing to do with the decision of El Salvador, but it may affect the relationship status between them. IMF is seeing the threats brought by bitcoin and according to them, bitcoin adoption entails large risks for financial and market integrity, financial stability, and consumer protection. It also can create contingent liabilities. Read it here: https://www.imf.org/en/News/Articles/2022/01/25/pr2213-el-salvador-imf-executive-board-concludes-2021-article-iv-consultation

Nayib Bukele is very firm in his own decision not to abide with IMF, but i don't think El Salvador citizens agree with it since there were 80% of them were totally against from adopting bitcoin.

I agree, they know that El Salvador is one of the countries that's using USD as an official currency so they know better to have other potential competition removed if possible. Pretty sure that it's not just IMF that's behind this, maybe it's really the US government as they're the one's that's going to be benefiting when USD is the only official currency in El Salvador.

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.

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.

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

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.

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.

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.

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?  :D

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.

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.

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.

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.

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.

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.

UPDATE:  El Salvador Rejects IMF Call to Abandon Bitcoin as Legal Tender (https://news.bitcoin.com/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/

---

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.

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.
https://i.ibb.co/jZh4ynL/202201260932-main-cropped-1643164347.jpg

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

..
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

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.

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 ;D

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.

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.