El Salvador and the IMF

Discussion in 'Crypto Assets' started by long, Dec 10, 2024.

  1. johnarb

    johnarb

    I was supportive of El Salvador at the time when I should have been against it...

    To be fair, El Salvador provided guarantees as part of the law to compensate/convert to US $ any bitcoin payment received by a business within a specific time, i.e. 10-30 minutes,

    iow, businesses had the choice to get paid in US $

    This is all app-based through the Chivo wallet, very easy and instant, part of the infrastructure, ATM's for physical US $ cash and all
     
    Last edited: Dec 11, 2024
    #21     Dec 11, 2024
    long and NoahA like this.
  2. long

    long

    Great responses. I now agree that there shouldn’t be a government mandate to accept BTC as payment. And as long as the IMF doesn’t require El Salvador to sell the BTC already purchased I’ll dismiss my accusation of deep state manipulation.
     
    #22     Dec 11, 2024
    NoahA and johnarb like this.

  3. Now I got the exact details

    https://microsoft.gcs-web.com/static-files/412cc216-34d8-411e-bd96-71d59e4312c0

    upload_2024-12-12_13-31-44.png

    An overwhelming majority is against it, it is not a bunch of guys, more than 5 billion votes.
     
    #23     Dec 12, 2024
    long and johnarb like this.
  4. johnarb

    johnarb

    This is just to assess putting bitcoin in the treasury, not even outright purchase. It was not even close. I heard on Twitter spaces this cannot be proposed again to Microsoft for 5 years per SEC rule(?)

    I heard on the same Twitter spaces that Amazon is next to have this same proposal, it's the same group of activist shareholders
     
    #24     Dec 12, 2024
    long likes this.
  5. long

    long

    #25     Dec 12, 2024
    johnarb likes this.
  6. johnarb

    johnarb

    The board already recommended weeks ago to the shareholders to vote no

    It had very little chance. The bulk of the votes are from proxy companies (don't know the correct term) they are the ones voting in behalf of the funds Vanguard, and others and those follow the recommendation of the board most of the time
     
    #26     Dec 12, 2024
    long likes this.
  7. Pekelo

    Pekelo

    So a bank telling the loan taker not to go to the casino with the loan is creepy? Sounds reasonable to me...

    With loans there are always strings attached, one is to behave fairly responsibly.
     
    #27     Dec 12, 2024
    Picaso, gwb-trading and long like this.
  8. gwb-trading

    gwb-trading


    El Salvador's bitcoin wallet to be sold or discontinued after deal with IMF, official says

    https://finance.yahoo.com/news/el-salvadors-bitcoin-wallet-sold-151849574.html

    SAN SALVADOR (Reuters) - El Salvador's official digital bitcoin wallet Chivo will be sold or discontinued, an official said on Thursday, a day after the Central American country struck an agreement with the International Monetary Fund (IMF).

    Stacy Herbert, director of the national bitcoin office, said the cryptocurrency would remain a legal tender and that the government would continue to buy it, possibly at an accelerated pace, for its strategic reserves.

    On Wednesday, El Salvador struck a $1.4 billion loan deal with the IMF after agreeing that it would scale back its bitcoin policies. In 2021, the country became the first to make the cryptocurrency a legal tender.
     
    #28     Dec 19, 2024
  9. long

    long

    What kind of doublespeak is that?
     
    #29     Dec 19, 2024
    johnarb likes this.
  10. johnarb

    johnarb

    Chivo wallet is a dangerous precedent, imho it's a good decision for El Salvador to shut it down or sell it to a private corporation

    From what I understand, the Chivo wallet is only available to El Salvador citizens...

    but the danger is a sovereign nation state should not be running a monetary infrastructure network that can bypass international controls

    The Chivo wallet has inter-connectivity to the bitcoin network, lightning for sure, possibly the mainnet also, but it also has inter-connectivity to the crypto USD (USDT)

    A registered corporation can be audited or subpoenaed, but a sovereign nation running this opens a pandora's box and potential for abuse

    Imagine if another nation state followed this, and another one and another one, they could utilize international trades, even for oil...


    https://www.elitetrader.com/et/threads/el-salvador-to-host-44-countries-to-discuss-bitcoin.367127/
     
    #30     Dec 20, 2024
    long and NoahA like this.