The IMF is openly trying to get El Salvador to give up bitcoin

in crypto •  3 months ago

    Here is a video of the IMF press conference:

    https://x.com/samcallah/status/1842193389569143027

    From about 42 seconds in, she says bitcoin is a "key risk", she wants El Salvador's law on bitcoin to be "narrowed" and "public sector exposure to bitcoin to be limited". In other word, she wants El Salvador to sell govt holdings of bitcoin.

    If Bitcoin still had a proper community, and hadn't degenerated into a bunch of speculators, the community could crowd-fund some help for El Salvador, so they didn't need a loan from the IMF.

    But as it is, everyone is watching, hoping that either El Salvador muddles through, or someone else will help.

    In order for Bitcoin to reach it's potential, governments and central banks need to hold it, much like they hold gold.

    But a lot of countries are afraid to go anywhere near bitcoin, especially if it means they won't qualify for an IMF loan when they need it. This fear doesn't just exist in the developing world. Remember, just over a decade ago, Ireland, Portugal, Spain and Greece were in IMF programs, and they're all first-world countries that are in the euro.

    Basically, any country that has debts of over 100% of GDP is at risk of the markets turning on them, resulting in them needing help from the IMF.

    So the fight El Salvador is having with the IMF is crucial for bitcoin's future.

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