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

[Obito]

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. 

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.

[KaliLinux]

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.

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.

[Artemis3]

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.

[S4VV4S]

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

[Sanitough]

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.

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.

[Fatunad]

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.

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.

[Finestream]

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.

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.

[cabron]

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.

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?  

[barbara44]

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.

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.

[dezoel]

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.

[coinmanhere]

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.

[electronicash]

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. 

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.

[Kasabus]

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. 

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.

[Dunamisx]

#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.

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.

[hugeblack]

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

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

According to its analysis, “In the near-term the actual costs of implementing Chivo and operationalizing the Bitcoin law exceed potential benefits,” the IMF stated in its recent report on El Salvador.

The International Monetary Fund also recommended that El Salvador’s government start charging fees for the use of its digital wallet, Chivo. In addition, the IMF wants the Salvadoran government to stop giving away $30 in bitcoin to anyone signing up to use the Chivo wallet.

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.

[mia_houston]

#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.

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.

[franky1]

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

[kamilah147]

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.

[Abiky]

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. 

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

[Maestro75]

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

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

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.