Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => Bitcoin Forum => Bitcoin News & Updates => Topic started by: ABCbits on April 13, 2024, 03:01:30 PM
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IMF Demands Changes to El Salvador's Bitcoin law: Report
The International Monetary Fund (IMF) is reportedly demanding changes to El Salvador's pro-Bitcoin law, hindering the country's attempts to secure a $1.4 billion credit line as reported by Infobae.
El Salvador made history in 2021 by adopting Bitcoin as a legal tender under President Nayib Bukele. The country has since bet big on Bitcoin, building Bitcoin reserves, mining BTC, and launching educational initiatives. Read more here (https://cryptodaily.co.uk/news-in-crypto/bitcoinmagazine:imf-demands-changes-to-el-salvadors-bitcoin-law-report).
It's not surprising when IMF did same thing some years ago. They also doesn't acknowledged El Salvador finally gain profit after putting a bit of their reserve in to Bitcoin few years ago. Your opinion is greatly appreciated.
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It's not surprising when IMF did same thing some years ago. They also doesn't acknowledged El Salvador finally gain profit after putting a bit of their reserve in to Bitcoin few years ago. Your opinion is greatly appreciated.
IMF is ashamed to acknowledged that El Salvador made a good decision of NOT listening to its ideas and demands and that this small country got the vision IMF do not like at all and so they keep on pressuring the government of Nayib Bukele to modify things as the narrative of IMF is exposed to be not really advantageous for countries it supposed to help. In exchange for financial help, IMF usually lay down the things it requires for a country to accomplish first before one can access money needed for developmental programs and economic stimulation for progress...in many cases IMF is actually curtailing real growth and is hindering the potential of a country to stand on its own. I am not so sure if the president of El Salvador will yield to these required changes or what areas he can compromise without losing the grip of the country's fragile economy.
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The IMF never agreed with the moves made by Bukele when it comes to Bitcoin, but apparently they are still trying to be present in that country and change something about it. The only question is whether Bukele can do without that loan or is it necessary for the country to continue functioning normally?
It would be ideal if Bitcoin could be of help in this particular case, but now the question arises whether the continuation of the policy that Bukele has towards Bitcoin could be harmful for his country in the long term? The IMF and similar organizations have different mechanisms that can significantly complicate the economic situation of any country that is in trouble like El Salvador.
Now the only question is whether one of the two parties will give in to their positions, or will they remain firm and in this way push El Salvador even further away from the IMF.
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Bukele has become the center of focus as he has chosen not to back down to the pressure of those who oversee others' affairs. The IMF, which was intended to help balance the growth of every country's economy, has become a poverty-distributing organization, especially to smaller countries that find it hard to decide for themselves. Smaller countries have fallen to the feet of the IMF due to excessive debts incurred. Sadly, my country has also crumbled and become a slave to the IMF. The country's traditional currency has been devalued, all thanks to the IMF.
El Salvador is currently preparing a path in order to make an exit from IMF slavery, a wonderful decision that would help the country in the future. I think Bukele knows the risks attached to Bitcoin before investing such an amount. The IMF is pretty scared of the massive profits it will subject to in the future.
If other smaller countries can follow a similar step, the financial activities of a few, like the US and UN, would be limited and would lead to self-dependency. Unfortunately, this might not happen, as many leaders are already subjected to the IMF as they've chewed more than they can swallow.
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~snip~
If other smaller countries can follow a similar step, the financial activities of a few, like the US and UN, would be limited and would lead to self-dependency. Unfortunately, this might not happen, as many leaders are already subjected to the IMF as they've chewed more than they can swallow.
El Salvador is still a specific case because 20+ years ago they gave up their national currency and replaced it with the US dollar, so their experiment with Bitcoin is not something completely new in terms of potential risks. However, the data show that the country's public debt is constantly increasing, and the question is whether the president can refuse the IMF and still keep the country afloat.
When you mention other countries, it is true that the IMF, World Bank, BIS and various other organizations that many have never heard of govern the world in such a way as to bring countries into debt slavery, and then they have their own rules by which the country should function.
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The International Monetary Fund (IMF) is reportedly demanding changes to El Salvador's pro-Bitcoin law, hindering the country's attempts to secure a $1.4 billion credit line as reported by Infobae.
So El Salvador is being blackmailed, let's speak properly. Bukele is not a guy who lets himself be blackmailed but money talks and $1.4 billion is a lot more than the value of his bitcoin, currently about $205 million (https://finance.yahoo.com/news/el-salvador-thousands-more-bitcoins-004326888.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFJQVUHwIv9afeha2if8cMxb9doG0Oh8Mx6LFgMnOr4nlgpi3WCq7bmpYycB4GLL4D7CgZjIZpXeQqurB28LgsBMDfHeYyKWiiuVsmKdTHNFJ1qjioboVL2vgRSZOei7fpQSVMOKcROWk3wEDBxN-8whQlgH4PfPSlCHcwoCxE8h). We'll see what he comes up with because I don't see him changing his bitcoin policy because of this but it can't be a comfortable situation.
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The International Monetary Fund (IMF) is reportedly demanding changes to El Salvador's pro-Bitcoin law, hindering the country's attempts to secure a $1.4 billion credit line as reported by Infobae.
So El Salvador is being blackmailed, let's speak properly. Bukele is not a guy who lets himself be blackmailed but money talks and $1.4 billion is a lot more than the value of his bitcoin, currently about $205 million (https://finance.yahoo.com/news/el-salvador-thousands-more-bitcoins-004326888.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAAFJQVUHwIv9afeha2if8cMxb9doG0Oh8Mx6LFgMnOr4nlgpi3WCq7bmpYycB4GLL4D7CgZjIZpXeQqurB28LgsBMDfHeYyKWiiuVsmKdTHNFJ1qjioboVL2vgRSZOei7fpQSVMOKcROWk3wEDBxN-8whQlgH4PfPSlCHcwoCxE8h). We'll see what he comes up with because I don't see him changing his bitcoin policy because of this but it can't be a comfortable situation.
FYI, what you quoted actually is piece of news i shared. Although saying it's a blackmail isn't exactly wrong. And while $1.4 billion credit initially sounds attractive, it's limited by various condition which often criticized as hindering economic recovery or even make it worse. I don't expect Bukele will accept IMF demands.
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FYI, what you quoted actually is piece of news i shared. Although saying it's a blackmail isn't exactly wrong. And while $1.4 billion credit initially sounds attractive, it's limited by various condition which often criticized as hindering economic recovery or even make it worse. I don't expect Bukele will accept IMF demands.
I haven't researched in detail, but I remember that during 2021/22 there was news and a discussion on BTT about how El Salvador is negotiating with the IMF about a loan of $1.3 billion - I wonder if we are talking about a new loan now, or the story about everything is just repeating itself in some new circumstances?
https://fortune.com/2022/01/25/el-salvador-imf-bitcoin-loan-bailout/
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FYI, what you quoted actually is piece of news i shared. Although saying it's a blackmail isn't exactly wrong. And while $1.4 billion credit initially sounds attractive, it's limited by various condition which often criticized as hindering economic recovery or even make it worse. I don't expect Bukele will accept IMF demands.
I haven't researched in detail, but I remember that during 2021/22 there was news and a discussion on BTT about how El Salvador is negotiating with the IMF about a loan of $1.3 billion - I wonder if we are talking about a new loan now, or the story about everything is just repeating itself in some new circumstances?
https://fortune.com/2022/01/25/el-salvador-imf-bitcoin-loan-bailout/
Assuming news source i use is accurate, it's continuation of 2022's loan/credit offer.
However, the IMF has objected to the Bitcoin law amid loan negotiations with El Salvador, which needs financing to pay debts and obligations. Talks have stalled for nearly two years over the IMF's calls to limit Bitcoin's scope in the country.
Note that bold formatting is added by myself.
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@ABCbits, Bukele seems to be a tough nut to crack, although debts have to be paid one way or another, and I remembered we discussed this on BTT and @stompix (https://bitcointalk.org/index.php?topic=5342087.msg61659438#msg61659438) brought up some interesting data indicating that Bukele has found some alternative financing methods.
If nothing else, the man is skilled in maneuvering between keeping all positions open in case he needs them :)
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FYI, what you quoted actually is piece of news i shared. Although saying it's a blackmail isn't exactly wrong. And while $1.4 billion credit initially sounds attractive, it's limited by various condition which often criticized as hindering economic recovery or even make it worse. I don't expect Bukele will accept IMF demands.
How is blackmail when Salvador asks for 1.4 billion and the bank asks for conditions?
Blackmail is about harming one if they don't do as you please, here it is pretty simple, do this and you get the loan, don't and we don't give you the money you're asking for!
@ABCbits, Bukele seems to be a tough nut to crack, although debts have to be paid one way or another, and I remembered we discussed this on BTT and @stompix (https://bitcointalk.org/index.php?topic=5342087.msg61659438#msg61659438) brought up some interesting data indicating that Bukele has found some alternative financing methods.
Yeah, the famous payout of the debt.
Mom, I have some great news I just paid my 200k loan from BoA, and also some bad news, I took a 240k loan from JPM for that! ;D
Also, why would Salvador need the IMF money, well, because...
These are the figures of GDP growth in 2022/2023 for central america:
Guatemala 4.1% 3.5%
Panama 10.8% 5.1%
Honduras 4% 3.2%
Salvador 2.6% 2.7%
Nicaragua 3.8% 3.1%
Costa Rica 4.6% 4.1%
Belize 8.7% 4.2%
Salvador has had the lowest growth in Central America for two consecutive years!
But I bet you won't see Bukele tweeting about this!
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~snip~
But I bet you won't see Bukele tweeting about this!
However, he is a politician who, like most politicians, is just a populist who says what people want to hear and only brags about positive results. El Salvador is a country that has had problems for decades (like most of Central and South America) and no matter who is in power, the fact is that no one manages to turn things around for the better.
I can only explain it by concluding that with all the resources they have, their politicians are completely incompetent or they are just much bigger thieves than some other politicians.