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.
The IMF Just Improved El Salvador’s Bitcoin Law https://bitcoinmagazine.com/takes/the-imf-just-improved-el-salvadors-bitcoin-law
Will Max and Stacey try to spin this, or pack their bags?
Who?
lalz, see what you did there
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
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.
It's the fact that these institutions force one to either accept their terms or go under, it's sick and twisted.
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?
"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?
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!
Alex Gladstein wrote a book about that:
Exactly this. They're binding poor countries to the $ ad aeternum.
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?
The loans are structured to enslave the nations that take them.
The current government of El Salvador did not enter the debt contracts which have forced the current El Salvador government to accept the terms imposed by the IMF.
The IMF is a major organ of the Fiat Debt Slavery Bankers Cartel.
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.
I smell heresy!!I smell heresy!!
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.
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?
Huh?
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.
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)
Good points here. I wonder what the overall plan is?
Come on, Bukele gave the IMF crumbles for them to save face. And El Salvador still received the loan.
Bitcoin use was always voluntary. The mandatory part was never enforced.
The Chivo wallet was the worst element of the plan, there are thousands of complaints online. And it was not necessary, there are a hundred better wallets. Now, Bukele has an excuse to close the program.
And well, the tax payments one was the only concession. A small one, as far as I can see.
IMF blackmail
it's crazy IMF can dictate these terms
Bitcoin usage in El Salvador should have always been voluntary. That being said the IMF is evil but we will destroy them in time.
Do we have a source for this?
Isn't that a fucking tonne of staps backwards?
Well El Salvador, you are done now.
Article from Blocktrainer. https://www.blocktrainer.de/blog/bitcoin-kein-gesetzliches-zahlungsmittel-mehr
Thanks!
Lmfao this is good bug spray for retards
To be honest I'm not sure that's a bad thing. How is forcing small businesses to accept bitcoin very different from forcing them to accept the dollar? Because I have a preference for bitcoin? I'd say that legal tender laws are a violation of freedom of association.
People trust Fiat because it's enforced by the state; The state legitimizes it.
The gross majority of the populace "need" a central entity to say the "safe word" and legitimize Bitcoin, to "enforce" it, because only then it's deemed acceptable by the former, à la: The state trusts it, thus I can trust it too!
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.
#815841
And neither did they have to force them to part ways with Bitcoin, yet here we are.
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.
Why do people take loans from loan sharks? Same shit different stage.
Terrible news.
El Salvador doesn't have their own currency. They are now hitched to the American shitcoin.
Do you feel any better now knowing what El Salvador just did with that $1.4 billion? 🤣
Did what?
People who enter politics often fit a certain type: they tend to be spineless and go with the flow. This aspect of their nature is never going to change. Same goes for Bukele. Instead of relying on politicians, people should focus on their own lives and stop waiting for a saviour. It’s more productive to care less about what a public corporation (government) does and take personal responsibility. The more we talk about them the more power they have over all of us.
imf sure is evil
The good stuff doesn't have to be mandated.
Yeah, we know that because we can think for ourselves, others? Not so much.
Stay humble And stack sats. Don't depend on your government.
What about capital gains tax?
Woh bro. Chill the fuck out
They “borrowed” billions to buy more coins.
“Legal tender” laws are statist and non voluntary so it’s good people are not forced to accept Bitcoin.
Governments will not save the people. We have to save ourselves
Human laws are not valid anyway
Tell that to anyone in prison.
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.
How did el salvador get cowed so easily? They were sitting on top of the world for a moment there.
Seems like everyone's got their price.
They are joining a failing endeavor.
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.
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.
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