Bitcoin Forum

Bitcoin can help all nations: El Salvador able to pay back an $800M bond because investment in BTC brought money to the country. El Salvador has completed payments of its $800 million outstanding bond following concerns that it could default due to its decision of making Bitcoin a legal tender. 
Regardless, the country still owes $367 million plus interest on an $800 million bond due to mature in 2025. Despite all of these progress made by the El Salvador government in their decision to invest in and adopt bitcoin as a legal tender in there country, still the international monetary fund can help but keep making discouraging warning statements to make El Salvador to make a U-turn in their financial policy on bitcoin.

IMF issues another warning to El Salvador on its Bitcoin decisions:
The country has been very certain about its decision to integrate Bitcoin into its financial sector. However, the International Monetary Fund (IMF) keeps issuing warnings. After a recent visit of IMF staff in the country, they observed that the Bitcoin risk to the country has not materialized yet. This is said to be due to its limited use of the decentralized asset.  https://www.crypto-news-flash.com/bitcoin-can-help-all-nations-el-salvador-able-to-pay-back-an-800m-bond-because-investment-in-btc-brought-money-to-the-country/

IMF is an international financial organization of which I believe are only driven to render financial assistance to nations whose economic policies  are in alignment with theirs, and its no news that the IMF as an organization is not unconnected to centralized authority system.  Whereas bitcoin is a decentralized currency of which it's operational pattern doesn't conform to central government influence and interference, and so I wonder, could it be due to these factors that the IMF in bent on giving out warnings to the El Salvador government against their acceptance of bitcoin into their financial sector and heavily investing on it but rather doing so under the pretext of supposed risk that El Salvador decision might pose to it's economy?

How did that 800M come from ?

Indeed. More or less if a Central Bank is against it, its good :)
IMF/WB are made by people from central banks all over the world.
Central Banks reason of existence is to aid Banks in case of bankruns.
Bankruns are only possible because of fractional reserve.
Not even 10% of the fiat money in the world exists, this scheme works because people are not withdrawing at the same time...
And with their wealth they influenced lawmakers over the 20th century to build robustness to it.
Said lawmakers also got input from economists of this system, that needs trash money to "incentive" people to get in debt...
This is why they fear deflation so much, non garbage money puts all of this at risk.
People saving to buy, instead of getting in debt to buy breaks this.

With Bitcoin, we don't need Banks, Central Banks, or a World Bank/IMF. We don't need exchanges either, its all about a circular economy where you pay in bitcoin and get paid in bitcoin. Just think of the implications, you will become free from the State and those financial institutions.

Banks and exchanges can still exist but should be relegated for some legacy use and always optional, not mandatory how they made it today where they made it impossible for you to function in society without them. Bitcoin is restoring your freedom, you used to have some with fiat cash, but unfortunately the value of fiat cash can be destroyed by some decree overnight.

Do you understand the value of Bitcoin yet? You should...

Bitcoin has already proved itself as an international payment instrument and will continue to prove it.Against the background of recent events in the world, such as wars and earthquakes, people continue to devour both bitcoin and other cryptocurrencies.As for me, this is a unique tool that needs to continue to be used for such purposes.

I believe the issue of high volatility is one of the major reason why IMF is issuing warnings to El Salvador.  For IMF, investing in a high volatile asset is a red flag since IMF believe that the Bitcoin market can crash anytime and will incur losses to El Salvador's economy.

We know that IMF is a strong believer of centralized financial institution, so Bitcoin being decentralized is one negative point for IMF.

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Bitcoin if taken seriously and with right regulation can surely help one country.  It has been discussed and stated that Bitcoin can bring new jobs, potential business venture and start-ups that can give a country profit. 

If i should ask you this question, how Bitcoin help a nation? From my perspective in cryptocurrency and especially bitcoin which is the most influential coin in cryptocurrency can help a nation when the country decode the important of cryptocurrency, so i believe that cryptocurrency can have a support for a nation when they invest via Bitcoin with a credible traders that knows the advantages and disadvantages of cryptocurrency precisely.

Same question, I haven't follow how much they invested on Bitcoin and when did they sell to take profits.

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But regardless of the question though, Bitcoin can indeed help all nations, but there is a caveat as well, not all are willing to invest specially if this talk about the whole country's economic outlook. It will be a big risk for the sitting President like Bukele to believed on Bitcoin itself. That's why the IMF had issued warnings but El Salvador stood firm on Bitcoin and if this news is true then another good example how it can help a poor nation generation money to pay off it's debt although there will be skeptics here for sure.

Yes bitcoin can help but if only the nation accept it and take it as legal tender then BTC will becomes a help to the nation. I see that IMF warning as threat. They are saying this because they know that El Salvador is going to be a great nation in the future. And they don't want any nation to be a great nation and have the financial freedom because they have chained all the nations to themselves and loan them financially. The problem we are facing in Nigeria is causing by IMF. IMF knows that they can't control bitcoin so the only way to stop El Salvador is to stop them using bitcoin which El Salvador will not agree for that.

Any nation can benefit from bitcoin but eventually not all will have this experience at the same time since we are already having some adopting while some were having a second thought about bitcoin adoption, yet we need to emphasize on the bitcoin adoption in El-Savador and IMF retreation concerning it as well, El-Savador has already made it decision with bitcoin and i see not need for IMF to continue in it propaganda against their decision if not that they were missing out something, i hope they wouldn't have wanted El-Savador to be free from any opportunity that could serve an avenue to clear it debt and remain independent for live, and such decision with bitcoin adoption could make this a reality but IMF wouldn't wanted.

As a matter of fact, that is  one of the major reason Satoshi Nakamoto invented the bitcoin so that there would be financial liberation all round the world irrespective of the economic crisis ravaging nation's globally but this could only be achieved if only the nation's of the world sees what the inventor of the bitcoin wants them to see just like a poster posted here in response to this topic created. Bitcoin can make national reserve in time to come if only they see it so, from all indications in a short while, bitcoin will take the place of gold and therefore would automatically become a globally recognized store of value which means that each one time fraction of bitcoin will count in numbers which can not be comprehended.

After the 2017,the bitcoin was became a world transaction instrument.Because after the huge pump of bitcoin price of 19k dollars in 2017,many new people come to the forum.Most the exchange are support of crypto currency and used to send to any part of the world.It’s doesn’t possess huge free for the transaction.And the transaction time period of PayPal and Wireless trans away huge.So the crypto currency was take of 5-10 minutes for the transaction of bitcoin to the other part of world.You should concentrate on the address before sending the crypto currency to avoid of sending to wrong address and it should be checked on every transaction.

I do not think that they did. At least I have not seen anywhere that Bukele has made it public.

Nowhere it is mentioned about the country doing 800 million. The tourism industry have boomed which was at the low bottom due to the pandemic. Something around 35% growth in the tourism industry have taken place which is really good. More infrastructure plans have been planned out of the bitcoin bonds and things haven't touched the reality. Possibly it takes time and begins when the market turns to be strongly bullish.

If you have neutral mind and experienced enough, when you see anything project, person, company that promises perfect things, it's lie. I am not doubtful that they are lying with perfect promises that easily to realize.

Bitcoin is good to help poor people to become richer if they can invest and hold Bitcoin many years and don't trade. Bitcoin can help people individually or communities locally as payment method, part of treasury but it can not and will never be able to fix all things around the world.

The world has many countries and each of them have unique social economic politic status so you will not have anything that can solve all of problems in all nations globally.

IMF is not at all independent. It is located in Washington, D.C. United States and despite what they officially announce, they have always been enforcing US interests. Their only concerns regarding El Salvador and their warning is not about bitcoin in El Salvador's economy. Their concern is that a country that didn't have a national currency and was using 100% US dollar is now slowly dumping the dollar and moving away from it.

Yes, Bitcoin can help a Nation which El Salvador be the first country to made Bitcoin legal tender for their economy to improve and to eliminate high rate of unemployment in the country. El Salvador government has used Bitcoin to build many infrastructure around the country for other countries to know how important Bitcoin is to a nation and how it can help a Nation to be far from inflation in the land. I think, the risk El Salvador government took some years ago to made Bitcoin popular in their country that is attracting other countries to do the same thing, because of the positive results that is coming from El Salvador government.

The IMF is a fiat-based organization. If a country prefers to adopt a currency that the IMF cannot control and influence in more ways than one, you can expect that it won't support it. It would discourage the country. It would also criticize the new currency. If possible, it would even try to bring it down. It's just that Bitcoin is decentralized. All the IMF could do is to be critical of it. They cannot shut it down. So they are making up issues and problems that would arise if El Salvador's adoption of Bitcoin pushes through. In the end, they're proven wrong.

Bitcoin doesn't help any other nations in this story, El Salvador just pay their bonds using Bitcoin, Bitcoin isn't an airdropped coin where it make El Salvador can earn $800 Million. Actually the better example how Bitcoin can be used to help all nations are the donation for Ukraine [1], as for earthquake disaster on Turkey, they only accept altcoins [2]. It's really not make sense how charity organizations ask for 10-20% fee while using Bitcoin or altcoins only charge for less than 1% for the fee and 5% to cashout.

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[1] https://bitcointalk.org/index.php?topic=5387590.0
[2] https://bitcointalk.org/index.php?topic=5438580.0

No. Please, you don't have to dispersed in the extended idea "Help me".

So. Let's go to the specifics of your idea, which as antecedent to its context, has that headline.

Bitcoin is a tool that, depending on its individual use, helps the payment process and safekeeping of our assets, as never before could be done so efficiently, whether buying or selling.

Then, it is decentralized in the traditional context of the financial framework. Hence, it is this context, the one that worries the FMI.

@Lida93, please don't open a new thread for things discussed in other threads, especially since we have a main thread about El Salvador. How much Bitcoin helped (or didn't) El Salvador is a topic we can discuss endlessly, but it certainly didn't help pay off the debt you're talking about here. The truth is much different than what most people think, so I will just quote @stompix post in the hope that it will help someone to understand who paid what and where the money came from.

I've read it earlier about El Salvador that they have a special attitude toward foreign debt: they try to repay as much as they can and be independent of others. That, in a way, helped them deal with the IMF, which was against El Salvador making Bitcoin legal tender, but since El Salvador tries not to owe money, the IMF didn't have much leverage over them.
So even if they owe something to the IMF now, I don't think El Salvador will change its policies regarding Bitcoin. I'm impressed if Bitcoin actually helped them as much. It hasn't been great over the last year for Bitcoin, so I assumed they lost money rather than gained it.

Not it doesn't, so called "crash" already happened but Bukele is no idiot. He is holding the bitcoins while spending the fiat.
Don't think of bitcoin as asset, think of it as currency. But different than fiat. Use what you must hold the rest. If you can hold all of it even better, but in a future without fiat income, then yes, you are going to spend some of it, but there is no need to get in debt or burn it all before it loses is value...

Yes, Fiat is designed to lose its value, its not a "maybe", it is intentionally made to lose value from their dogmatic economy beliefs (Monetarists). Instead the so called "volatility" of bitcoin, turns out when you zoom out the graph, that is not such. Long term its tendency is more than clear, even right now, its still valued higher than 3 years ago, think about it. At the same time, fiat has gone down worldwide, as designed to do, just a bit faster with govs overspending and abusing their powers to just "print more" whenever they feel like it.

Inflation is the worst of taxes, and govs can cause it at will, not Bitcoin...

Many people only see the Huge money in crypto but only a few of them realize the dark side of crypto. Regularizing Crypto but on the user, risk will be a good decision instead of mixing it with the whole country and involving it with the Government. That's the main reason IMF warn them and many others.

Despite how dearly I love the idea of Bitcoin, both as an asset and means of payment from my POV, I strongly believe it won't solve the world's financial problems. My reasons aren't far fetched. Not all nations are blessed with electricity supply like what we've in the advanced countries. Dealings in Bitcoin require power supply but sadly not every nation has that. Secondly, accepting Bitcoin as legal tender is a matter of choice. Invariably, not everyone is in tune with using Bitcoin and that counts for something. Its use won't be globally accepted. So, it can't really be of help to all nations.

If Bukele is an idiot or not, only time will tell. The fact is that he took a big risk when investing in bitcoin during a bearish market, and now luck must be on his side in order to not finish as an idiot on the story. As he is using fiat and keeping bitcoins untouched, he is creating more debt for the country through loans, while betting bitcoin can overcome the bearish scenario soon, so he can finally pay the debt created with profit from bitcoin investment.

Bitcoin was created with the intention of making trading and owning it profitable for the average person. Due to the rigorous regulations set on cryptocurrencies that carry a fine for breaking them, not all nations can buy bitcoin. Bitcoin is welcomed in industrialized nations, but underdeveloped nations are wary of the initiative for fear that it could replace their fiat money. Existence of bitcoin is beneficial, since it will simplify operations and payment methods worldwide. Although it won't be adopted everywhere, the bulk of European nations are already familiar with it and are reaping significant financial benefits.

What risk? There is no risk when you buy bitcoin. Only fools who don't know they need to wait for selling, if ever.

Guess what, of all the bitcoins they have bought, apparently, they have sold NONE. They are holding, this is zero risk, unless you believe the rhetoric that bitcoin is going to zero, repeated every year and actually going the opposite direction...

What El Salvador is doing is building a sovereign reserve, better than gold without the outrageous custody costs... In a future where most of its income is in bitcoin, i suppose they will start using/selling some, but currently they have plenty of fiat to burn, no need to spend precious bitcoin.

It is a normal strategy ("HODL") any bitcoiner should have. He is no fool unlike the rest of the politicians worldwide, at least regarding Bitcoin. However no country can ever develop with crime, so that other part is also correct imo no matter what others say. I know how crime destroys an economy very well, write it down: if they keep walking this path, El Salvador will become the Switzerland of the Americas.

Hmm, seems IMF is on wrong foot lately. Anyways they are bank people so they will never agree the very existence of borderless transaction using bitcoin. It is but obvious that they will show negative data more prominently as compared to what nation has achieved with bitcoin acceptance. If such organisations do not render the proper use of crypto currencies then definitely they are not surrounded by very smart people.

Imagine situation where El Salvador’s holdings grown to trillions of dollars in a decade or so? Since price is supposed to go up as we see lesser emission and high demand with the time. The country where bitcoin is legal tender will be looked at as hot hub for the use of crypto currencies. It will be one of the first rich country due bitcoins holding decisions.

El Salvador is doing just that. They are strongly keeping hold of it. They would not care about IMF or any authority once they gain nice returns in the coming years.

yes it can change everyone,s fate

If people do P2P and that globally. An example: If a woman in India lives in poverty and calls for help, then a person in Europe could send her some Bitcoin (or altcoins) within a few minutes so that she can buy some food, or pay a doctor because she is sick. There are millions of people who live with less than 2$ a day, if you want to help these people quickly, you could do it with bitcoin. A nation or the government can watch people help each other, or they can enable the option for all people to help each other. When you eat in a restaurant in Europe, you spend much money compared to India, El Salvador, Africa and many other. We could all support each other all over the world, but that is a dream that may never come true. Who needs the IMF for this?

I don't think it was intentional or the developer of BTC expected that his invention can be used for trading and investing. What he only know is that he created a kind of currency which are opposed to fiats. I wouldn't wonder any more if industrialized nations are like that, it's because they embrace every opportunity, not like to the undeveloped nations who are scared of many things.

This is the main thing that limits them to improve as a nation. BTC can indeed simplify the payment operation because there will be no need for a third party when we use it but some people might think BTC is too complex so they will still stick to what they already know.

I agree with you but the fate can change only if bitcoin is focused on with the right perspective, El Salvador have taken the right step in that direction as they have made bitcoin a legal tender among other things that come with that is fhe bitcoin bond which is a fraction of the countries reserve and should yield interest if the price of bitcoin keeps increasing the way it is right now.
But to make a point very clear, the $800 millions debt repayments are not mentioned to be from Bitcoin, because El Salvador has not sold any of their Bitcoin since their bought it some time ago.