El Salvador to revoke Bitcoin as legal tender?

[brainactive]

If the IMF had a choice between a world with no Bitcoin and a world with Bitcoin, I think it's fair to say they want Bitcoin gone.

IMF gives grants to small countries.

What will cripple Bitcoin more than Tesla announcing they will accept Bitcoin and then later revoking it? A country such as El Salvador announcing they will accept Bitcoin as legal tender and then later revoking it and claiming it didn't work out.

If we put one and one together, is it possible that IMF promised to increase grants to El Salvador if they accept and later revoke Bitcoin, in an attempt to de-legitimise Bitcoin?

[CryptocurencyKing]

This is you @OP being very speculative to see a side to the story that nobody is yet considering but this is most likely not to be the story for El-Salvador.  I don't believe or want to believe that this is some conspiracy of some sort aimed at ridiculing bitcoin more and more from where Elon left of. What I see in El-Salvador's decision to make bitcoin a legal tender is genue and legit.
For sure, there have to be a first to bring this break through to the world. From where it is now, it has not being passed into law and made it binding with the 90days period on it but then, it will and it would be grate. El-Salvador would open the world to bitcoin and with them as a lab rat at the moment, we can only hope for more adoption.

[Zilon]

Bitcoin is a treat to nation's economy. If IMF had the opportunity to ban cryto completely the would have done that a long time a go. El Salvador Has already created a history as they are the first country to accept Bitcoin as legal tender with President Nayib Bukele touting the cryptocurrency’s full ability as a remittance alternative of legal tender for Salvadorans. Stating clearly through its finance minister Alejandro Zelaya that it's not abondoning US dollar but adopting crypto as well. Will this cause a boast in Bitcoin price this I patiently wait for

[cabron]

El Salvador or like any other country doesn't even need Bitcoin to be a legal tender to be used. There was just news I've read that there is a high official who opposes the law but I don't think it matters anymore to the people of El Salvador because it looks like they are using BTC long before this talk about being legal tender.

Bitcoin is a treat to nation's economy. If IMF had the opportunity to ban cryto completely the would have done that a long time a go. El Salvador Has already created a history as they are the first country to accept Bitcoin as legal tender with President Nayib Bukele touting the cryptocurrency’s full ability as a remittance alternative of legal tender for Salvadorans. Stating clearly through its finance minister Alejandro Zelaya that it's not abondoning US dollar but adopting crypto as well. Will this cause a boast in Bitcoin price this I patiently wait for

The IMF can still ban crypto completely, they could try that to see the outcome. But this is sort of a sanction again to the smaller countries which had been done many times.

[dothebeats]

If we put one and one together, is it possible that IMF promised to increase grants to El Salvador if they accept and later revoke Bitcoin, in an attempt to de-legitimise Bitcoin?

Why wiuld the IMF publicly disclose such an offer anyway? Also, there’s nothing to be gained on their end even if bitcoin is to disappear tomorrow. Pretty sure they would still give grants and loans to countries that needed it the most, given that these countries would be forced to pay anyway to settle the debt. The IMF doesn’t need extra persuasion from their end to a country to stop using bitcoin. It’s entirely on the country’s discretion to stop these things, not the IMF’s. Also, there are still lots of sources to ask financial aid from, so even if the said organization blackmailed El Salvador, the country would just expose the deal and look for help somewhere else.

[tippytoes]

If we put one and one together, is it possible that IMF promised to increase grants to El Salvador if they accept and later revoke Bitcoin, in an attempt to de-legitimise Bitcoin?

Why wiuld the IMF publicly disclose such an offer anyway? Also, there’s nothing to be gained on their end even if bitcoin is to disappear tomorrow. Pretty sure they would still give grants and loans to countries that needed it the most, given that these countries would be forced to pay anyway to settle the debt. The IMF doesn’t need extra persuasion from their end to a country to stop using bitcoin. It’s entirely on the country’s discretion to stop these things, not the IMF’s. Also, there are still lots of sources to ask financial aid from, so even if the said organization blackmailed El Salvador, the country would just expose the deal and look for help somewhere else.

I believe, that's only a speculative theory of the OP. It doesn't mean that the situation will or about to happen. We will see in the next coming months or years how El Salvador is performing in terms of their acceptance of bitcoin as legal tender. Because if they are successful or at least improve some aspects, other countries will follow their steps. Because if it has negative impact to their system, it will always show. They can't hide such influence.

[macson]

snip

^@OP i think you are delusional, you should immediately go to a psychiatrist....don't you think el Salvador is the same as Elon musk who thinks bitcoin is a joke, El Salvador has officially announced to the world making bitcoin a legal tender there so the IMF can't even change their decision.

[livingfree]

I thought this is another news. LOL 

That won't happen. They won't waste their time revoking that they've made a law just recently. That's a wishful thinking of yours but you'll see that they'll be happy to add some more incentives as they attract more investors and companies going to their country.

They're probably thinking of making El Salvador as a crypto haven.

[Baofeng]

Well its possible that El Salvador might some day change their tune, but not likely because of pressures from IMF. Every nation is sovereign, if every country that will accept bitcoin a legal tender and then IMF entering into the picture to disrupt them, then what do you think will happen globally? El Salvador will have to prioritise their country, unless they wanted to be a slave on this fiat global body.

[kayiboyu]

I was really shocked when I saw the subject name. Fortunately, there is no such thing. Because this is a really serious action. El Salvador can't go back from this that easy now. And it shouldn't try also. It should determine the pros and cons after using Bitcoin like this for some time. Then, it can do whatever it wants with Bitcoin.

[NotFuzzyWarm]

<snip>
If we put one and one together, is it possible that IMF promised to increase grants to El Salvador if they accept and later revoke Bitcoin, in an attempt to de-legitimise Bitcoin?

You used the words I highlighted in blue leading one to ask: the source(s) of your information that led you to pondering this scenario is?....

[22bits]

The benefits to El Salvador will be many times greater by having a non fiat option there any enticement to revoke IMHO.  Countries have historically basked in the light of a strong currency, it is only in recent times that all countries that are manufacturing based are in a race to the bottom with their fiat's.  So I don't see an outlier like El Salvador as having much incentive to revoke anything.

[Kemarit]

There is also that possibility that the next elected El Salvador president will vetoed it and revoke Bitcoin as legal tender in their country. However, if there are incentives and benefits from the government and their people then why revoke it? Just because an organization that facilitate help to countries in terms of loans (with high interest) telling them to repeal Bitcoin? that argument doesn't make any sense.

[Henrobakkara]

I thought this is another news. LOL 

That won't happen. They won't waste their time revoking that they've made a law just recently. That's a wishful thinking of yours but you'll see that they'll be happy to add some more incentives as they attract more investors and companies going to their country.

They're probably thinking of making El Salvador as a crypto haven.

I thought the same too 

I also agree with you that I believe that the President of El Savaldo will try everything he can to make this work since it is all the assistance requested from the World Bank before that was not fulfilled and is still not granted the Nation that has made the President take this turn.

I believe that El Salvado being a crypto Heaven is sure if everything falls in place which I believe it will, it's just a matter of time because the Government is committed.   

[Lorence.xD]

The benefits to El Salvador will be many times greater by having a non fiat option there any enticement to revoke IMHO.  Countries have historically basked in the light of a strong currency, it is only in recent times that all countries that are manufacturing based are in a race to the bottom with their fiat's.  So I don't see an outlier like El Salvador as having much incentive to revoke anything.

IMF will make their offer more attractive so the government of El Salvador is going to do the revoke of legal tender status of bitcoin, but I don't think that we have to worry too much about it because IMF will have to be at a disadvantage if they want to make the offer attractive.

[ChiBitCTy]

Remember when Greece went in to financial ruin a few years back and the global markets panicked...for like a whole 2-3 days? It ended up not being a big deal at all when people realized it's a tiny country without much influence on the world markets.  Even if El Salvador doesn't end up making btc their legal tender, that doesn't mean they don't still support it, or can't do it down the road.  El Salvador is even smaller than Greece population wise and is not a major player in the world economy, so in reality it won't be that big of a deal. 

[int03h]

If the IMF had a choice between a world with no Bitcoin and a world with Bitcoin, I think it's fair to say they want Bitcoin gone.

IMF gives grants to small countries.

What will cripple Bitcoin more than Tesla announcing they will accept Bitcoin and then later revoking it? A country such as El Salvador announcing they will accept Bitcoin as legal tender and then later revoking it and claiming it didn't work out.

If we put one and one together, is it possible that IMF promised to increase grants to El Salvador if they accept and later revoke Bitcoin, in an attempt to de-legitimise Bitcoin?

70% of El Salvadorans do not have a bank account and their currency is US dollars. The people of El Salvador love Bitcoin so there is no reason for the country to change constantly, which could create disturbances to the national economy. We have to wait and see if bitcoin helps El Salvador's economy go up.
To replace Bitcoin with another means of payment, the government of El Salvador needs a better means of cashless payment than Bitcoin.

[hatshepsut93]

I think IMF here is worried that if a government converts a large portion of their reserves into BTC and then BTC crashes, they won't be able to repay their loans. Because if IMF had a goal of stopping Bitcoin from being used, they could lobby very hard against it, like demanding from countries to just ban it. But they never showed any big interest in BTC until now.

[Lucius]

Anything is possible, one should not take things for granted regardless of the fact that a law has been passed - but it has not yet entered into force. The pressure is, of course, great from all those who do not like this situation, especially in the context of the fact that Bitcoin as a legal tender in El Salvador has implications for how other countries will have to treat it.

What is most often mentioned as one of the main reasons for using Bitcoin in that country are the faster and cheaper transactions of their US expatriates, who send about $6 billion a year to their home country. Can Bitcoin be a solution that will result in savings if on-chain transactions are used? In part, it will all depend on the number of transactions in mempool - sometimes the fee will be cheap, sometimes it will probably be higher than the usual bank transaction.

Using the LN specifically mentioned in their case can solve the problem - but for families who regularly receive money from abroad it would be even easier to use shared crypto wallets - person A makes a BTC deposit, person B can access that same BTC without doing any transaction.

[Tumanggor]

I think IMF here is worried that if a government converts a large portion of their reserves into BTC and then BTC crashes, they won't be able to repay their loans. Because if IMF had a goal of stopping Bitcoin from being used, they could lobby very hard against it, like demanding from countries to just ban it. But they never showed any big interest in BTC until now.

I'm sure in this case IMF can't lobby all countries. it is not certain whether El Salvador has debts to the IMF
The IMF in this case seems to be unable to do anything, they cannot enter into the important decisions of a country

I'm sure El Salvador will defend their decision, there's no reason to back down
they will definitely not throw away the nickname as the first country to make Bitcoin a legal tender