IMF strikes once again

[Reatim]

The International Monetary Fund (IMF) has rejected Pakistan’s bid to offer subsidised electricity to Bitcoin mining operations, dealing a significant blow to the nation’s bold plans to become a regional crypto hub shortly after its high-profile debut of its first strategic Bitcoin reserve.

While testifying before the Senate Standing Committee on Energy on Thursday, Secretary of Power Dr. Fakhray Alam Irfan said that the IMF was concerned about creating market distortions.

The government had proposed allocating 2,000 megawatts from its 7,000 MW electricity surplus to cryptocurrency mining and other energy-intensive industries at rates of 23-24 Pakistani rupees ($0.08) per kilowatt-hour (kWh). But, the IMF remains skeptical despite surplus power during winter months, cautioning that such incentives resemble tax holidays that have historically undermined market efficiency.

if you guys remember, imf also restricted el salvador into further developing their attempts to make bitcoin a huge part of their country i believe the country was advised to take a step back from its crypto advances which we know el salvador did not really follow imf as they continued to buy bitcoin

anyway another country's involvement to crypto being turned down by imf makes me think it is now a pattern that maybe imf really is not supportive of crypto no matter what the context is. first world countries who can operate on their own are more likely to advance with crypto and bitcoin since they do not need to be asking for resources from other authorities.

source

[BitGoba]

IMF supports crypto, but it does not support Bitcoin. If you are the owner of the Fed, a banker with a monopoly over money creation and control over finances, that gives you unlimited power. It is natural that you don’t want to support competition from decentralized money like Bitcoin. Crypto is supported because it distracts many people from Bitcoin. Crypto is a distraction. Crypto is a return to fiat, and most crypto serves one purpose,to maintain fiat currencies and pollute the space through USDT and USDC.

[cabron]

 Pakistan Crypto Council CEO Bilal said he was only following what US doing and considering Bitcoin Strategic Reserve so why is IMF not bothering US with its policies when its also creating market distortions.

Bhutan I think is doing the same thing too which they are using the power from their hydro power plants to mine Bitcoin. I think the rest of the world should be doing the same thing like the Volcano of El Salvador. There is a chance the finance crisis of these countries will be saved by BTC.

[pooya87]

Pakistan Crypto Council CEO Bilal said he was only following what US doing and considering Bitcoin Strategic Reserve so why is IMF not bothering US with its policies when its also creating market distortions.

In one word: monopoly.

Maybe this American organization called IMF is trying to prevent others from gaining any share of the Bitcoin market and hashrate to give the US regime that monopoly Trump has dreamt about: the "Crypto capital of the world" nonsense.

[Z-tight]

It seems the IMF always has a problem when BTC is involved, they are trying so hard to slow down adoption, but it continues to grow and they are just grasping at straws at this point. First, they had to force El Salvador to reduce their involvement in BTC in order to give them a loan, now they don't approve of Pakistan subsidizing electricity for crypto mining, because according to them it will disrupt the energy market. If the IMf had their way, they'll stop every country from getting involved in BTC, lol.

However, the plans are not off yet, Pakistan is still in discussion with other organizations, though the chances of implementing this has obviously reduced.

[NotFuzzyWarm]

so why is IMF not bothering US with its policies when its also creating market distortions.

Um, because unlike many smaller countries the USA has no loans from the IMF so the IMF has no say or leverage in what we do. 

[buwaytress]

Won't be the first time a country's rejected IMF or the World Bank outright -- even from the 1990s several countries in Southeast Asia went ahead with fiscal policies that later proved to be the right course of action, despite vehement protest and warnings from the big boys at IMF and WB.

Not saying they're necessarily evil. They do have a duty to warn and advise when a country is seemingly committing economic seppuke but I don't get the fear behind PK's move (if true). There are far bigger problems they need to solve on the ground. PK may have a power surplus but they need to fix their regional grids. Ask any Pakistani if they have ever went through an entire year without power cuts.

[dumpsterhawk]

It is time for Pakistan to take the high way and stop being ruled by the IMF. This is nothing more than the continuation of colonialism and the sabotage of developing nations.

Not saying they're necessarily evil. They do have a duty to warn and advise when a country is seemingly committing economic seppuke but I don't get the fear behind PK's move (if true). There are far bigger problems they need to solve on the ground. PK may have a power surplus but they need to fix their regional grids. Ask any Pakistani if they have ever went through an entire year without power cuts.

They are evil, and people who believe otherwise are very naive. They don't have a duty to create wealth for your country, they have a duty to create wealth for themselves.

[hyudien]

I assume that the IMF does not want Pakistan to go further in mining, it will make it easier for Pakistan to accelerate its economic growth. And politically, India may not want that to happen to its competitors so there is a lot of involvement to prevent Pakistan, this is just my assumption. What is certain is that the IMF is trying to limit Pakistan's income as much as possible so that they can monitor it.

[yhiaali3]

IMF supports crypto, but it does not support Bitcoin. If you are the owner of the Fed, a banker with a monopoly over money creation and control over finances, that gives you unlimited power. It is natural that you don’t want to support competition from decentralized money like Bitcoin. Crypto is supported because it distracts many people from Bitcoin. Crypto is a distraction. Crypto is a return to fiat, and most crypto serves one purpose,to maintain fiat currencies and pollute the space through USDT and USDC.

I agree with your point. The IMF supports cryptocurrencies, but it doesn't support Bitcoin. It is trying to support centralized stablecoins like USDT and USDC, which I consider worse than banks and fiat currencies.

But I disagree with you on one point: generalizations shouldn't apply to all cryptocurrencies. There are cryptocurrencies similar to Bitcoin in terms of decentralization and privacy, such as Ethereum (ETH), LTC, Monero (XMR), Dash (DASH), and Zcash (ZEC), although they are, of course, not comparable to Bitcoin..

[headingnorth]

Bitcoin mining is often a great way to make use of excess energy capacity. Why let all that extra energy go to waste?
There are many successful models of bitcoin mining including Bhutan, El Salvador, Texas, even China.

Why not start with a small scale mining pilot program and see how it goes? To hell with the IMF.

The IMF doesn't want poor countries to achieve success and economic independence because it threatens their power
and control over them. They want to keep them poor and trapped in their system of debt slavery forever.

[MinoRaiola]

if you guys remember, imf also restricted el salvador into further developing their attempts to make bitcoin a huge part of their country i believe the country was advised to take a step back from its crypto advances which we know el salvador did not really follow imf as they continued to buy bitcoin

anyway another country's involvement to crypto being turned down by imf makes me think it is now a pattern that maybe imf really is not supportive of crypto no matter what the context is. first world countries who can operate on their own are more likely to advance with crypto and bitcoin since they do not need to be asking for resources from other authorities.

source

The beginning is difficult because the most are alone there, or they have few/no people for a support. When IMF comes and someone wants to suppress a little one, it becomes more difficult. But that is important that there are people with courage and they continue on the right way and dont treat anyone. El salvador has done that and now they need help from other countries so that its no longer so important what the IMF wants. After that, Bitcoin decides the right way.

[Fivestar4everMVP]

The International Monetary Fund (IMF) has rejected Pakistan’s bid to offer subsidised electricity to Bitcoin mining operations, dealing a significant blow to the nation’s bold plans to become a regional crypto hub shortly after its high-profile debut of its first strategic Bitcoin reserve.

While testifying before the Senate Standing Committee on Energy on Thursday, Secretary of Power Dr. Fakhray Alam Irfan said that the IMF was concerned about creating market distortions.

The government had proposed allocating 2,000 megawatts from its 7,000 MW electricity surplus to cryptocurrency mining and other energy-intensive industries at rates of 23-24 Pakistani rupees ($0.08) per kilowatt-hour (kWh). But, the IMF remains skeptical despite surplus power during winter months, cautioning that such incentives resemble tax holidays that have historically undermined market efficiency.

if you guys remember, imf also restricted el salvador into further developing their attempts to make bitcoin a huge part of their country i believe the country was advised to take a step back from its crypto advances which we know el salvador did not really follow imf as they continued to buy bitcoin

anyway another country's involvement to crypto being turned down by imf makes me think it is now a pattern that maybe imf really is not supportive of crypto no matter what the context is. first world countries who can operate on their own are more likely to advance with crypto and bitcoin since they do not need to be asking for resources from other authorities.

source

I was going to ask what hold does the international monetary fund (IMF) have on this countries, but your ending statement explains it all.
This is why dependence can be very dangerous and limiting most of the time, it is hard to ignore the advice or restriction of someone you clearly and obviously depend on for something very important to you...

I believe this is how this countries depend on IMF, if not, I see exactly no reason why any country would allow an external body or organization decide what happens or not happen in the country when the government of the country and the people have decided on what to do or invest in to move their country forward.

[mindrust]

IMF supports crypto, but it does not support Bitcoin. If you are the owner of the Fed, a banker with a monopoly over money creation and control over finances, that gives you unlimited power. It is natural that you don’t want to support competition from decentralized money like Bitcoin. Crypto is supported because it distracts many people from Bitcoin. Crypto is a distraction. Crypto is a return to fiat, and most crypto serves one purpose,to maintain fiat currencies and pollute the space through USDT and USDC.

I think that’s true. They like crypto , just not the one that actually matters. They like all the centralized FIAT crap that pretends to be crypto but no bitcoin.

Maybe we shouldn’t give IMF any attention? They don’t deserve any since they are clearly not pro-bitcoin.

If IMF rejected Pakistan’s offer, that’s not the end of the road. It is just the beginning what’s to come as Pakistan won’t give up on crypto because of IMF. I hope some crypto rich people go and help this country achieve their goals. We would all benefit from this.

[SATWAT]

I was going to ask what hold does the international monetary fund (IMF) have on this countries, but your ending statement explains it all.
This is why dependence can be very dangerous and limiting most of the time, it is hard to ignore the advice or restriction of someone you clearly and obviously depend on for something very important to you...

I believe this is how this countries depend on IMF, if not, I see exactly no reason why any country would allow an external body or organization decide what happens or not happen in the country when the government of the country and the people have decided on what to do or invest in to move their country forward.

Here I have to be agreed with you partially dependence is always dangerous but need to understand IMF mostly used double standards for developing countries because they are giving them good profit, and they are also having good control of their economies as well.
If they will be allowed them to have done things freely this could never be allowed them to have control of these developing countries which are under their control IMF giving them money in shape of loans after having approval from USA then they are controlling them and having their own interest just because of this its never been easy for these countries to go against this system.
Pakistan is not stable country which will go against them and done anything which will hurt their interest currently its just start in next few weeks many more complications will be appeared, and then we all will be watch how things will be gone out of way for them as they are looking for crypto as safe heaven.

[SUPERSAIAN]

The International Monetary Fund (IMF) has rejected Pakistan’s bid to offer subsidised electricity to Bitcoin mining operations, dealing a significant blow to the nation’s bold plans to become a regional crypto hub shortly after its high-profile debut of its first strategic Bitcoin reserve.

While testifying before the Senate Standing Committee on Energy on Thursday, Secretary of Power Dr. Fakhray Alam Irfan said that the IMF was concerned about creating market distortions.

The government had proposed allocating 2,000 megawatts from its 7,000 MW electricity surplus to cryptocurrency mining and other energy-intensive industries at rates of 23-24 Pakistani rupees ($0.08) per kilowatt-hour (kWh). But, the IMF remains skeptical despite surplus power during winter months, cautioning that such incentives resemble tax holidays that have historically undermined market efficiency.

if you guys remember, imf also restricted el salvador into further developing their attempts to make bitcoin a huge part of their country i believe the country was advised to take a step back from its crypto advances which we know el salvador did not really follow imf as they continued to buy bitcoin

anyway another country's involvement to crypto being turned down by imf makes me think it is now a pattern that maybe imf really is not supportive of crypto no matter what the context is. first world countries who can operate on their own are more likely to advance with crypto and bitcoin since they do not need to be asking for resources from other authorities.

source

The IMF’s rejection of this plan is disrupting Pakistan’s vision due to concerns about economic and energy market balances. The IMF’s decision is not only due to economic reasons but also political reasons, perhaps it could be one of the main reasons, otherwise why would the IMF care about Pakistan’s economy?

For now, it seems likely that this initiative will be suspended or reshaped, as if Pakistan will not be able to launch this plan immediately.

[Smack That Ace]

 so why is IMF not bothering US with its policies when its also creating market distortions.

It is no coincidence that the IMF is putting pressure on Pakistan or El Salvador, because both countries have bad economies and are borrowing money from the IMF. That is why they can interfere in the internal decisions of these two countries.
These two countries could ignore pressure from the IMF, but if they do, their aid will be cut off and their economies will likely get worse.

There is a chance the finance crisis of these countries will be saved by BTC.

If bitcoin can save a country's economy from crisis, why is El Salvador's economy still struggling and at risk of default even though they adopted bitcoin since 2021? Why do they have to beg the IMF for loans and endure pressure from this organization?

[HelliumZ]

How can the IMF provide a loan to Pakistan to purchase Bitcoin mining equipment or tools when El Salvador is repeatedly forbidding it from investing in Bitcoin?
Pakistan had sought loan assistance from the IMF to generate 2,000 megawatts of electricity, but yesterday the IMF said it would not provide any assistance to Pakistan to help it mine Bitcoin.
However, Pakistan will allocate funds to purchase 2,000 megawatts of electricity and mining equipment to set up a Bitcoin mining project with its own funds.

[Iranus]

I assume that the IMF does not want Pakistan to go further in mining, it will make it easier for Pakistan to accelerate its economic growth. And politically, India may not want that to happen to its competitors so there is a lot of involvement to prevent Pakistan, this is just my assumption. What is certain is that the IMF is trying to limit Pakistan's income as much as possible so that they can monitor it.

I don't think this is relevant to India because the IMF not only attacked Pakistan but also attacked El Salvador, and they only interfere in what is related to bitcoin, not all economic decisions.

Furthermore, bitcoin mining is just a small part of Pakistan's plan to boost its economy and not a key industry for the country. If the IMF doesn't want Pakistan to improve its economy, why did they decide to lend money?

The simple reason is because the IMF doesn't like bitcoin and they don't want their borrowing countries to adopt bitcoin.

[rodskee]

Pakistan Crypto Council CEO Bilal said he was only following what US doing and considering Bitcoin Strategic Reserve so why is IMF not bothering US with its policies when its also creating market distortions.

if you compare usa and pakistan, it is obvious which one has more political power and which one has a stronger economy

global or international organizations like imf may favor first world countries more even if they try to do it subtly that is the truth anyway and usa does not need to ask them for permission

Bhutan I think is doing the same thing too which they are using the power from their hydro power plants to mine Bitcoin. I think the rest of the world should be doing the same thing like the Volcano of El Salvador. There is a chance the finance crisis of these countries will be saved by BTC.

a lot of other third world countries may be following some may still studying the effects from other countries and gauging how international organizations will react first