[Update] IMF urges El Salvador to remove Bitcoin as legal tender

[franky1]

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.

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.

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

[suzanne5223]

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.

[_act_]

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.

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.

[cabron]

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.

[cornhodlr]

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.

[Taskford]

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.

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.

[Jasad]

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.

[AakZaki]

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

~snip~

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.

[elisabetheva]

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.

[cornhodlr]

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.

[masterrex]

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.

[thecodebear]

#BREAKING IMF urges El Salvador to remove Bitcoin as legal tender

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.

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.

[Renampun]

#BREAKING IMF urges El Salvador to remove Bitcoin as legal tender

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.

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.

[Oilacris]

#BREAKING IMF urges El Salvador to remove Bitcoin as legal tender

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.

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.

[kawetsriyanto]

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?

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.

[LUCKMCFLY]

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.

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.

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... .

[BuNga_cute]

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.

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.

[bbc.reporter]

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.

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.

[franky1]

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

[pooya87]

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.