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IMF Approves $1.4b for El Salvador and "confines" Bukele's Bitcoin purchaseswww.imf.org/en/News/Articles/2025/02/26/pr25043-el-salvador-imf-approves-new-40-month-us1-bn-eff-arr
309 sats \ 10 comments \ @k00b 27 Feb Politics_And_Law
This is worse than it even initially sounded. There was no mention of the the government's bitcoin activities before.
The potential risks of the Bitcoin project are being addressed in line with Fund policies and with Fund advice to the authorities. Prior actions include legal reforms that have made acceptance of Bitcoin by the private sector voluntary and ensured that tax payments are made only in U.S. dollars. Transparency of the public crypto e-wallet has been strengthened, and the government plans to gradually unwind its participation in the e-wallet. Going forward, program commitments will confine government engagement in Bitcoin-related economic activities, as well as government transactions in and purchases of Bitcoin. Regulation and supervision of digital assets will be enhanced in line with evolving international best practices.
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15 sats \ 0 replies \ @stack_harder 27 Feb
the IMF really is terrified of btc
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45 sats \ 7 replies \ @Cje95 27 Feb
I know this sounds off the wall but once El Salvador gets the funds what exactly prevents them from changing their mind? It isn't like the IMF has an army and given the dramatic change in how BTC is thought of I feel like plenty of lenders would be willing to bridge the gap.…
Hell Trump could even float them a loan at this point as well with his pro BTC stance so far
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106 sats \ 1 reply \ @petertodd 27 Feb
If they get funds once they're probably thinking about getting more loans later... Also the funds are likely going to come in tranches. If they don't use them the way the IMF wants they'll get cut off.
Fact is Bitcoin isn't growing fast enough for El Salvador to ignore the IMF's offers.
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0 sats \ 0 replies \ @Cje95 27 Feb
True I could see its hard to break a bad habit so to speak.
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7 sats \ 1 reply \ @79c9095526 27 Feb
I'd check out the book "Confessions of an Economic Hitman". You can also listen to the author on some podcasts/youtube videos if you don't want to read the book. He worked for these economic institutions and blew the whistle on exactly what "prevents them from changing their minds".
They start with the carrot (give you money, pay you off) but then quickly move to the stick (overthrow your government or simply assassinate you). Its an amazing read.
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0 sats \ 0 replies \ @Cje95 23h
*USAID Enters the chat
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5 sats \ 2 replies \ @Solomonsatoshi 27 Feb
The IMF is an institution of US power projection- along with SWIFT, World Bank and BIS. Trump is not going to go against the bankers who own the US government over a barrel of $33 Trillion.
What stops El Salvador from changing their mind? - read the fine print of the contracts- if you can access them. The IMF and US government are one and the same thing and the bankers are in control of both.
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0 sats \ 1 reply \ @Cje95 23h
Banks though are rapidly accelerating BTC adopting and for better or worse Tether which is the quickest growing USD bond buyer. Lets say in 4 years the whole US government flips that is 4 years of hollowing out these entities that put profit over people. Not to mention the US would be moronic to kick someone like El Salv our of SWIFT that would be the dumbest move.
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0 sats \ 0 replies \ @Solomonsatoshi 22h
Capture and control of Bitcoin as a speculative commodity under US institutional custody preserves and protects the MoE hegemony of the USD. El Salvadors acceptance of Bitcoin as a currency was/is a threat to USD hegemony and the El Salvador governments accumulation of a Bitcoin stack could potentially have enabled a gradual decoupling from USD denominated trade payments. The IMF debt obligations appear to reduce the risk of that. No reason to throw El Salvador out of SWIFT as long as all El Salvador trade payments remain denominated in USD - it remains a model of USD tribute.
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7 sats \ 0 replies \ @megaptera 27 Feb
[...] ensured that tax payments are made only in U.S. dollar [...]
This is the only thing you need to know about the whole text...
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