El Salvador and the IMF

Just seen some news saying that El Salvador is reducing its use of bitcoin (whatever that means) in order to get approval for loans from the IMF. Any macro opinions on this?

 

Back to reality.

It's all non-sense.

Saylors microstrategy would have gone bankrupt and so they choose the ponzi scheme route. Instead of having a profitable business, they are trying to lure capital into this ponzi pet rock token.

 

imf loan in general is for government budgeting purpose, not act as monetary reserve.

 

I guess I was wondering why the IMF would require them to “scale back the use of bitcoin as legal tender and a reserve currency” to qualify for the loan. The only reason I can think of is the IMF thinks they’ll use the loan to buy bitcoin….

 

don’t have to think, just look at the budget.

but that’s a big accusation to make without proof.

 

My point is that the IMF request is an attempt to keep BTC down where it can. Is this a harbinger of future bolder moves against crypto holders?

 

How does crypto benefit anybody but the holders? Does it produces anything of value?

The only benefit of crypto is to the owners in price going up.

And not only that it doesn't create anything, there is a big net negative as it creates tremendous toll on the environment and the energy grid.

Fuck bitcoin.

 

The IMF telling a country not to invest in bitcoin and using financial pressure to do it is creepy. What if they start forcing 3rd world countries to join BRICS in order to borrow money? It’s deep state manipulation if I’ve ever seen it.

 

You're missing the point. Your acceptance of BTC as a reserve currency of El Salvador doesn't make it so to the IMF, one of the more conservative and politically dependent financial institution in the world. El Salvador took a huge gamble on BTC and their strategy is winning today, but to the IMF El Salvador is like the kid trying to make it big on a poker hand instead of going to school. It's not their job to finance their addiction.

BTC still has a long way to go to displace gold or the US$ as a repository of value, regardless of its highs and lows in the gambling market.

 

I don’t know enough of the details to make an intelligent argument. It would be perfectly acceptable if the IFM said that the loan couldn’t be used to purchase more bitcoin. But asking them to divest from it and require that it not be legal tender in the country seems manipulative.