pull down to refresh

IWF bought El Salvador into submission: Bitcoin's no legal tender anymore.
526 sats \ 36 comments \ @Fabs 3h bitcoin
The Details of the IMF Deal
The deal approved yesterday between El Salvador and the IMF provides for the country to receive an Extended Fund Facility (EFF) program worth $1.4 billion.
Additionally, the program is expected to trigger further financial support from the World Bank, the Inter-American Development Bank, and other regional development banks, resulting in a combined total financing package of over $3.5 billion during the program period.
According to the press release, the agreement was deemed necessary to strengthen the country’s financial stability and economic resilience.
The key points of the program are as follows:
- Fiscal Policy: El Salvador must reduce its budget deficit and place public debt on a sustainable path. - Transparency and Governance: The IMF demands enhanced reporting, anti-corruption measures, and reforms to strengthen governance. - Financial Sector Stability: Banks must increase their liquidity reserves to better absorb risks. - Digital Assets: Bitcoin and related projects face restrictions:
  • Bitcoin use in the private sector remains voluntary.
  • Government involvement will be significantly reduced – the Chivo wallet will be discontinued.
  • Bitcoin can no longer be used for tax payments.
The clear message is that Bitcoin will be largely banned in the public sector, and its role as a means of payment will shrink drastically.
If I could go short on humanity, I frickin' would. I hate it. A life long game of ruler and ruled. Fuck those monetary institutions, all of them.
write
preview
related posts
30 sats \ 2 replies \ @BlokchainB 1h
Who is surprised by this? El Salvador is a small poor country. I’m curious to know what they need the $1.3B for. It must be dire if they are changing laws to get the money.
While the IMF may suck they don’t force these countries into taking these bad loans the people and their unstable economies and governments do.
People haven’t figured out yet all the frauds and scams that prop up modern life today. The USA government is on the hook for $36T that’s owed to various governments, pension funds, and many others that depend on USA to pay them back. Which in itself is a scam. Who keeps lending money to the USA government?
It’s one big wheel of fraud it just sucks to see those who have nothing get tangled up in it.
reply
61 sats \ 1 reply \ @nerd2ninja 48m
No, when you're in debt for a money that you can print yourself, its meaningless. The debt is just a feel good way to print money without much objection (vs printing it without a debt) When you're in debt and must pay in a foreign countries currency its not the same situation at all.
I am surprised because El Salvador held its Bitcoin through a bear market and now that Bitcoin's price is a little high they completely sold out? Its crazy. I don't think they're desperate for the money, I think they just saw a lot of money and lost their minds.
What I'm seeing so far doesn't require El Salvador to sell its Bitcoin though or prevent it from buying more, so many they're trying to pull a Michael Saylor and go into debt to buy more Bitcoin or something (lel if that's the case)
reply
0 sats \ 0 replies \ @BlokchainB 29m
Good points here. I wonder what the overall plan is?
reply
178 sats \ 3 replies \ @siggy47 3h
Will Max and Stacey try to spin this, or pack their bags?
reply
53 sats \ 1 reply \ @Fabs OP 2h
Who?
reply
0 sats \ 0 replies \ @denlillaapan 1h
lalz, see what you did there
reply
43 sats \ 0 replies \ @DarthCoin 2h
They will shill tether now into oblivion. Tether is just the step forward to CBDC. Will make BTC as a reserve and people will be forced to use tether/cbdc.
El Salvador was the trap and now is the playground to implement a CBDC backed with BTC reserves (total bullshit but people will fall into this crap).
@remindme in 5 years
reply
43 sats \ 12 replies \ @0xbitcoiner 3h
I'm not shocked. The legal tender part was more of a marketing ploy, and it didn't get much use, as far as I know.
reply
21 sats \ 11 replies \ @Fabs OP 3h
It's the fact that these institutions force one to either accept their terms or go under, it's sick and twisted.
reply
160 sats \ 10 replies \ @0xbitcoiner 3h
In this specific case, I don't blame the IMF, it's El Salvador who needs the money. If I need a loan, I always have the option of refusing the terms, I can't blame the lender, right?
reply
54 sats \ 9 replies \ @Fabs OP 2h
"You need a new kidney or you're going to die within two weeks, the cost of this surgery is $30.000; Do you want to pay in installments with a %15 p.a yield?"
You don't always have much of a "choice", do you?
reply
0 sats \ 1 reply \ @SpaceHodler 1h
So now that things haven't gone our way and we need the blessings of fiat (effectively a bailout), we suddenly have to defend fiat, possibly Keynes, and throw praxeology out the window?
reply
0 sats \ 0 replies \ @Fabs OP 2m
Huh?
reply
0 sats \ 6 replies \ @0xbitcoiner 2h
It's not quite the same situation. Who fucked up to need a loan? I never thought that one day I would 'defend' the IMF! I think my point is clear. We're all saints and devils in certain situations!
reply
21 sats \ 0 replies \ @SpaceHodler 1h
I hear you.
Loans are a feature of fiat. If you embrace the Bitcoin way, don't scream when the fiat overlords don't want to lend you money, so that you can perform a speculative attack on the very fiat system you want to benefit from.
reply
11 sats \ 2 replies \ @ek 2h
Who fucked up to need a loan?
Alex Gladstein wrote a book about that:
The IMF and World Bank were created to help countries survive financial crises and to help them develop into prosperous economic actors. But their 75-year track record shows that their loans and structural adjustment policies have plunged poor countries into impossibly large debt traps and forced the Third World to focus on producing goods for consumption in the West, instead of growing consumption and industry at home. The Bank and the Fund’s “development and assistance” has been anything but. The reality is a history of neocolonial exploitation with shocking results.
reply
55 sats \ 0 replies \ @Fabs OP 2h
Exactly this. They're binding poor countries to the $ ad aeternum.
reply
0 sats \ 0 replies \ @0xbitcoiner 2h
I understand that and the IMF and others are also devils causing perverse situations. I'll just say this one more time, who asked for and accepted the terms of the loans?
reply
0 sats \ 1 reply \ @Fabs OP 2h

I smell heresy!!

reply
0 sats \ 0 replies \ @0xbitcoiner 2h
I remember a few years ago when Portugal needed a loan from the troika, I think it was €72B, everyone blamed the troika for the cuts the government was forced to make in order to get the loan. Not me, I blamed the government, which was one of the main culprits in putting us in this situation.
reply
0 sats \ 0 replies \ @grayruby 36m
Bitcoin usage in El Salvador should have always been voluntary. That being said the IMF is evil but we will destroy them in time.
reply
0 sats \ 0 replies \ @sangekrypto 58m
Even though there is a prohibition order, there are still many people who use it as a means of payment, but how can it be prohibited, because some bitcoin users only carry out personal transactions.
reply
0 sats \ 0 replies \ @gandules 1h
The IMF Just Improved El Salvador’s Bitcoin Law https://bitcoinmagazine.com/takes/the-imf-just-improved-el-salvadors-bitcoin-law
reply
0 sats \ 2 replies \ @Shugard 2h
Do we have a source for this?
Isn't that a fucking tonne of staps backwards?
The clear message is that Bitcoin will be largely banned in the public sector, and its role as a means of payment will shrink drastically.
Well El Salvador, you are done now.
reply
21 sats \ 1 reply \ @Fabs OP 2h
Article from Blocktrainer. https://www.blocktrainer.de/blog/bitcoin-kein-gesetzliches-zahlungsmittel-mehr
reply
0 sats \ 0 replies \ @Shugard 2h
Thanks!
reply
0 sats \ 4 replies \ @SpaceHodler 2h
Fuck those monetary institutions, all of them.
El Salvador didn't have to borrow from the IMF. I don't and I'm fine. If they do, the problem lies within El Salvador and not the IMF.
P.S. Nico of Simply Bitcoin is going to be disappointed.
reply
0 sats \ 0 replies \ @ek 2h
#815841
reply
0 sats \ 2 replies \ @Fabs OP 2h
And neither did they have to force them to part ways with Bitcoin, yet here we are.
reply
0 sats \ 1 reply \ @SpaceHodler 2h
The IMF didn't force them to do anything.
They just said: "Hey, we have a loan to offer to you on these crappy terms. Take it or leave it." And El Salvador took it.
reply
0 sats \ 0 replies \ @Fabs OP 2h
Why do people take loans from loan sharks? Same shit different stage.
reply
0 sats \ 2 replies \ @Satosora 2h
How did el salvador get cowed so easily? They were sitting on top of the world for a moment there.
reply
0 sats \ 1 reply \ @Fabs OP 2h
Seems like everyone's got their price.
reply
0 sats \ 0 replies \ @Satosora 1h
They are joining a failing endeavor.
reply
0 sats \ 1 reply \ @gandules 3h
I disagree with the notion that Bitcoin will be largely banned in the public sector and its role as a means of payment will decline significantly. Instead, I believe that individuals in the public sector will continue to utilize sound digital money, such as Bitcoin, and when paying taxes, they will simply sell their Bitcoin to cover the costs. As a result, Bitcoin's role as a means of payment will actually increase substantially over time, as it proves to be a superior store of value and medium of exchange due to its salability and versatility across distances.
reply
0 sats \ 0 replies \ @Fabs OP 2h
And I think that some people will have to be forced to their happiness, most aren't willing to do the necessary "work" to get going.
reply