IMF urges El Salvador to remove Bitcoin as legal tender

[bitmover]

IMF urges El Salvador to remove Bitcoin as legal tender

The International Monetary Fund (IMF) has urged El Salvador to reverse its decision to make Bitcoin legal tender.

In September, El Salvador became the first country to allow consumers to use the cryptocurrency in all transactions, alongside the US dollar.

The decision led to large-scale protests over fears it would bring instability and inflation to the impoverished Latin American country.

Bitcoin has lost about half its value since November.

The IMF has warned President Nayib Bukele of the risks the cryptocurrency poses to the country, stressing that it would be difficult to get a loan from the institution.

https://www.bbc.com/news/world-latin-america-60135552


So, International Monetary fund demands that El Salvador remove bitcoin as legal tender, otherwise it refuses to give loans to the country.

They are doing so to protect the people, as bitcoin will "bring instability and inflation"

How come a deflationary currency will increase the inflation ? WTF!

they continue, saying that IMF wants to protect the consumers:

They highlighted the "large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection" and with issuing Bitcoin-backed bonds.

We don't know what is good for us, but they know it.

[jackg]

I'm assuming the recommendation is coming from the idea that El Salvador might use some borrowed funds to buy bitcoin.

I'm not certain on that but if it is the case, it'll reduce the countries chances of paying back debts in the immediate term (for example, if the price crashes).

Fees would probably be the thing to complain about with bitcoin and not inflation but there's potential el Salvador did this because the imf didn't offer them much in the first place.

[arallmuus]

So, International Monetary fund demands that El Salvador remove bitcoin as legal tender, otherwise it refuses to give loans to the country.

They are doing so to protect the people, as bitcoin will "bring instability and inflation"

This is the stupidest lie I've ever seen lol. The folks in IMF totally have no clue how bitcoin works it seems or probably they do but they tend to twist it somehow to make people feels unsafe with bitcoin

but there's potential el Salvador did this because the imf didn't offer them much in the first place.

It is and which is also why they announce it when all eyes are on bitcoin back then when crypto market was soaring and was the hottest thing that people search on the internet. They cant get much from IMF so they are looking for another option which is making bitcoin as their legal tender so their country would be consider some sort bitcoin safehaven thus more people might move in to their country and then somehow this would affect them beneficially

[coolcoinz]

First of all if I were Bukele I'd take this as an insult. Some organization that doesn't have anything to do with my country says it wants to protect them. Do these people think I'm not able to take care of my people? Do they think I'm putting them at risk and they can do better? They were never interested in helping my country before and now they dare to criticize me?

IMF is actually putting the people at risk by extorting them. Imagine someone you rent your house from says "I want to protect you so I want my house back tomorrow". If you want to extort me at least don't act like you're doing it for my own good.

[Gozie51]

I don't see how making bitcoin legal will cause inflation. Inflation affects the fiat which touches its ability of purchase or reduces the purchasing power. This is not relating to bitcoin so IMF trying to ring the alarm of protection of El Salvador people is mere distraction from there real role and functionality

This I see as another fight against bitcoin because it is going to come out more if the IMF succeed with there threat.

[Hydrogen]

I see posters on other forums and social media who I know are 100% computer and cryptocurrency illiterates, who never used bitcoin.

Speaking as if God spoke to them claiming: "bitcoin is a ponzi scheme, bitcoin causes inflation, blah blah blah".

It is a strange thing to see people be so polarized and biased on topics they know nothing about and have zero experience with.

Its like virgins claiming to be experts on sex.

[paxmao]

Scared they are young padawan. Just imagine that El Salvador is successful and manages to bring the country to a level of prosperity and independence from the world financial institutions. Scaring to death that is for the IMF young Jedis.

Jokes apart, IMF sets the rules to get funding, nothing new, the conditions are frequently nasty and tend to punish the lower strata of the population and have stronger effects on countries that have low ability to capture funds in the markets. This is just another example of inherence in internal affairs.

[Taskford]

IMF urges El Salvador to remove Bitcoin as legal tender

The International Monetary Fund (IMF) has urged El Salvador to reverse its decision to make Bitcoin legal tender.

In September, El Salvador became the first country to allow consumers to use the cryptocurrency in all transactions, alongside the US dollar.

The decision led to large-scale protests over fears it would bring instability and inflation to the impoverished Latin American country.

Bitcoin has lost about half its value since November.

The IMF has warned President Nayib Bukele of the risks the cryptocurrency poses to the country, stressing that it would be difficult to get a loan from the institution.

https://www.bbc.com/news/world-latin-america-60135552


So, International Monetary fund demands that El Salvador remove bitcoin as legal tender, otherwise it refuses to give loans to the country.

They are doing so to protect the people, as bitcoin will "bring instability and inflation"

How come a deflationary currency will increase the inflation ? WTF!

they continue, saying that IMF wants to protect the consumers:

They highlighted the "large risks associated with the use of Bitcoin on financial stability, financial integrity and consumer protection" and with issuing Bitcoin-backed bonds.

We don't know what is good for us, but they know it.

They are threaten by bitcoin because they can't control it that's why this is not surprising on why they want to eliminate it on the country like El Salvador because they know if El Salvador will succeed on this they cannot use this country business and profits. Hopefully El Salvador will not be threaten and they can overcome the challenges what they face especially bitcoin is on bear market season these days.

[Poker Player]

Well, we can't be surprised either, the IMF didn't like the fact that I made it legal to tender at first. Now they are taking advantage of the price volatility to continue sowing doubts. But Bukele has clear ideas and has made it clear that he will not give in to pressure. I believe that nothing is going to change his plans. Well, maybe if the price would go down a lot, but a lot.

[cheezcarls]

They don’t have the jurisdiction to do that to president Bukele and the country of El Salvador, because they were not educated enough about Bitcoin or doing some research about its positive takes. IMF is just simply illiterate and was just fed up with lots of misinformation about BTC and cryptocurrencies.

El Salvador has taken the right step towards innovation and adoption and they don’t want to be left behind. I even wished that Philippines would do the same after the election of our next president this coming May 2022.

[Mometaskers]

Saw this mentioned on r/Bitcoin and thought, yeah it's about time. Was actually surprised it took them that long to try to "dissuade" El Salvador from continuing to expand their Bitcoin adoption. 

I'm assuming the recommendation is coming from the idea that El Salvador might use some borrowed funds to buy bitcoin.

I'm not certain on that but if it is the case, it'll reduce the countries chances of paying back debts in the immediate term (for example, if the price crashes).

This haven't crossed my mind. That might be a legitimate concern for the IMF. Still F them though.

El Salvador has taken the right step towards innovation and adoption and they don’t want to be left behind. I even wished that Philippines would do the same after the election of our next president this coming May 2022.

Do you think any of them in particular would be cryptofriendly?

[arallmuus]

I see posters on other forums and social media who I know are 100% computer and cryptocurrency illiterates, who never used bitcoin.

Speaking as if God spoke to them claiming: "bitcoin is a ponzi scheme, bitcoin causes inflation, blah blah blah".

This is so 2014 vibes lol well yeah back then bitcoin was not really something that people would consider as a solid investment but right now we even have Tesla, paypal and all that big names that started to 'adopt' crypto onto their platform.

But Bukele has clear ideas and has made it clear that he will not give in to pressure. I believe that nothing is going to change his plans. Well, maybe if the price would go down a lot, but a lot.

Reminds me, what his plan was again? I honestly dont see a clear picture out of it but imo the reason is to gather people that wants to move into their country by creating crypto safehaven in there but I'd love to see what he will do if somehow the bear market continue or getting worst at this point. Getting to 30k / bitcoin is not really an issue but what if it goes deeper than that, it will definitely affect his country as whole

[Gozie51]

I believe that nothing is going to change his plans. Well, maybe if the price would go down a lot, but a lot.

I don't expect that price dip will make a believer to change there mind on bitcoin. The understanding of bitcoin is not just on bull volatility and the the decision to adopt it should cover even the bear. I believe he has been around during 2017 and beyond to monitor the precedence of bitcoin, bowing down at any point because of the pressure from IMF doesn't won't be a good thing for crypto world.

[Silberman]

First of all if I were Bukele I'd take this as an insult. Some organization that doesn't have anything to do with my country says it wants to protect them. Do these people think I'm not able to take care of my people? Do they think I'm putting them at risk and they can do better? They were never interested in helping my country before and now they dare to criticize me?

IMF is actually putting the people at risk by extorting them. Imagine someone you rent your house from says "I want to protect you so I want my house back tomorrow". If you want to extort me at least don't act like you're doing it for my own good.

That is the way those institutions always act, their offers are always something along the lines of do what we say or suffer the consequences, which is by no means a way to give helpful advice or anything, it is a threat, so I think it is to be expected the IMF will take steps to try to sabotage the economy of El Salvador and then if they are successful to give all the blame of it to bitcoin, however the IMF does not seem to realize that even if what El Salvador did was a bold move bitcoin does not need it, and bitcoin will keep thriving even if no country recognizes it as legal tender.

[darkangel11]

Scared they are young padawan. Just imagine that El Salvador is successful and manages to bring the country to a level of prosperity and independence from the world financial institutions. Scaring to death that is for the IMF young Jedis.

Jokes apart, IMF sets the rules to get funding, nothing new, the conditions are frequently nasty and tend to punish the lower strata of the population and have stronger effects on countries that have low ability to capture funds in the markets. This is just another example of inherence in internal affairs.

Watched Anthony Pompliano who is one of very few youtubers that I can stand.
He said the same thing that they're scared because El Salvador is showing defiance. Proving that it can be done to other poor countries that IMF wants to end up in debt.

What is important is that Bitcoin is already bigger than the IMF and growing bigger every year.

[fiulpro]

I wonder why they think that it's okay for the country to have an unstable currency but the moment they are trying to do something better especially using the volcanic bonds at the same time making it more green and more stable they have to remove them from it. I do think that they are just trying to bring it down. They have already invested so much money on it and if they try and do that they are the ones pushing the whole economic towards downfall. I do think they are just trying to manipulate the country into not giving such big platform to bitcoins I hope they do not listen to them since during the pandemic everything is unstable, literally everything. The country needs new things to get out of their current economic situation.

[goldkingcoiner]

Good to see these crooks getting nervous! 

Thats a very very very good sign for Bitcoin. But I expect they will learn all too soon that Bitcoin is unstoppable. Try as they may, its already too late!

That being said, I think its a very irresponsible move and perhaps even a illegal action of the IMF to pressure anyone into something. Since when is the IMF allowed to exert political pressure on countries? I think thats a very serious breach for a "fund". I am hoping to see legal action from the side of El Salvador sooner or later to put these IMF dogs in their place with the rest of the banker fanboys.

[Mauser]

I don't really understand how having Bitcoins as the legal tender in El Salvador is going to bring higher inflation. El Salvador relied heavily on the US Dollar and was struggling with their economy for years. Nothing wrong with trying out something in my opinion. When reading about the IMF it sounds a bit to me that they are afraid to lose influence in El Salvador and other central American countries. The IMF seems a bit biased here and might be the wrong agency to speak out here. Most of the IMF loans they give out are US Dollar denominated, so of course they want that countries remain as close as possible to it. With bitcoins the IMF also has some problems regarding the collateral for their loans. Borrowing in fiat money and then buying bitcoins is a very risky business and shouldn't be done by a government.

[teosanru]

This isn't really IMF that is speaking all this, it's actually the big countries like US/UK which are saying this through IMF, you can be a 15 year old and understand that there is no way that a deflationary currency can bring in Inflation unless obviously, you are talking about devaluation of fiat currency due to decreased demand and not exactly inflation. But I am very sure that EL Salvador won't come back from it's decision, it's a very small as well as independent country, it has never aimed of becoming a very big superpower for them, their limited economy works well, so they can very well operate without any such assistance from the IMF.

[el kaka22]

 They are not doing this just because they think that Bitcoin would be bad to citizens, in fact they couldn't care less what happens to citizens. It is about them getting their money back. They loan money to nations, and nations pay it back, with interest, and that is how they continue to exist. Nations also pay something like insurance to them in case they get bad so they could get a loan. If you told your bank, you yourself, that you want a loan to buy crypto, you think they would be happy about it? They wouldn't be, so it is the same logic.

IMF basically says "you are spending your money on bitcoin, don't come knocking on my door when you lose your money", which is a reasonable approach if you want loan. You should never get crypto with the money you get from a loan, and even though they didn't, IMF saying they also can't in the future as well.