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The real reason for the risk of default is that El Salvador was counting on a loan from the IMF and the IMF refused to make a loan to El Salvador while Bitcoin

The real reason for the risk of default is that El Salvador was counting on a loan from the IMF and the IMF refused to make a loan to El Salvador while Bitcoin is legal currency. Despite his misadventures with Bitcoin, President Bukele is wildly popular in El Salvador.

RobertDeNiro 4y ago
The IMF is anti cryptocurrency ?
- xvector 4y ago
  Most definitely - it takes away from their power.
- Bubble_Pop_22 4y ago
- pibechorro 4y ago
  Ofcourse. they muscled Argentina to prevent banks from dealing in it, despite popular support and the banks announcing it.
- webinvest 4y ago
  Yes.
- IAmEveryone 4y ago
  The IMF is anti-idiocy. So yes.
- collyw 4y ago
  That would depend on whether they control the cryptocurrency I imagine.
- toomuchtodo 4y ago
  The IMF is anti-gambling-with-soverign/borrowed-funds.
- neonihil 4y ago
  They are happy with their monopoly as it is.
- csomar 4y ago
  From the papers they released, I don't think they are. But this is an institution that works with SDR [https://en.wikipedia.org/wiki/Special_drawing_rights]; https://en.wikipedia.org/wiki/Special_drawing_rights]; so they are not going to "understand" Bitcoin. In a sense, they have their own Bitcoin. And I put understand in quotes because the IMF does get Bitcoin, Crypto and finance better than most countries. They understand that crypto is mostly bad news for weak countries because they are already having trouble with capital outflow as is.
- splix 4y ago
  IMF, as well as World bank and co, are anti-anything that could help a country to be less dependent on Wall Street. See https://en.wikipedia.org/wiki/Structural_adjustment#Criticisms https://en.wikipedia.org/wiki/Structural_adjustment#Criticis... and https://en.wikipedia.org/wiki/Enough_Is_Enough_(letter) https://en.wikipedia.org/wiki/Enough_Is_Enough_(letter) for examples.
manimino 4y ago
This is inaccurate. The IMF and other entities do not give aid or loans to dictatorships, because anything given to a dictatorship goes straight to the cronies at the top. El Salvador started having this problem as Bukele eliminated other branches of government. That's why he pushed Bitcoin adoption in the first place - to work around the problems caused by his desired form of government.
- Bubble_Pop_22 4y ago
- jrvarela56 4y ago
  LOL they lend to democracies in third world countries like mine where the money goes straight to the cronies at the top (Panama; I know the term is outdated but us third-worlders call our countries third-world). My wife worked for a Ministry here and saw how the world bank shoved loans on non-functioning institutions and charged my country interest ON THE AVAILABLE FUNDS (like a credit line but it doesn't matter if you use it or not) despite them being executed or not. I dont know wtf these people are doing, but benevolent they are not.
  - leviathan235 4y ago
    Yes, the IMF exemplifies the folly of global institutions. How long have they propped up kleptocracies like Argentina? "Democracy" is just a nice coat of paint over unbelievably corrupt countries where citizens will never see a dime of those loans yet will have to bear the burden of paying them back.
  - lottin 4y ago
    So why did your country take the loan if it was so terrible?
    - saint_fiasco 4y ago
      I think the point is that the cronies at the top took the loan on behalf of the country. They don't care that the terms of the loan are bad because they will personally get rich either way and paying back the loan is somebody else's problem.
JumpCrisscross 4y ago
> real reason for the risk of default is that El Salvador was counting on a loan from the IMF and the IMF refused to make a loan to El Salvador while Bitcoin is legal currency El Salvador's dollar bonds started crashing right after the Bitcoin announcement, before the IMF bailed; Bukele had already snubbed the IMF six months before when he "fired five top judges and the attorney general" [1]. > Bukele is wildly popular in El Salvador This is correct [2]. I'm not certain how this makes me feel about supporting them when this inevitably fails. [1] https://www.bloomberg.com/news/articles/2021-11-22/bitcoin-bond-on-horizon-sends-el-salvador-s-dollar-debt-diving https://www.bloomberg.com/news/articles/2021-11-22/bitcoin-b... [2] https://www.reuters.com/markets/currencies/majority-salvadorans-approve-bukeles-leadership-poll-shows-2021-12-15/ https://www.reuters.com/markets/currencies/majority-salvador...
csomar 4y ago
> Despite his misadventures with Bitcoin, President Bukele is wildly popular in El Salvador. He seems to have successfully controlled crime in El Salvador. Usually, there is something behind these strong men if they are still popular. Homicide is down from 103 in 2015 to 17.6 last year. People will stick with such figure; it's not clear why previous rulers have failed. 103 is scary as shit number. Bitcoin will look like a blip in his mishaps from the citizenry point of view.

RobertDeNiro 4y ago

The IMF is anti cryptocurrency ?

xvector 4y ago
Most definitely - it takes away from their power.
Bubble_Pop_22 4y ago
pibechorro 4y ago
Ofcourse. they muscled Argentina to prevent banks from dealing in it, despite popular support and the banks announcing it.
webinvest 4y ago
Yes.
IAmEveryone 4y ago
The IMF is anti-idiocy. So yes.
collyw 4y ago
That would depend on whether they control the cryptocurrency I imagine.
toomuchtodo 4y ago
The IMF is anti-gambling-with-soverign/borrowed-funds.
neonihil 4y ago
They are happy with their monopoly as it is.
csomar 4y ago
From the papers they released, I don't think they are. But this is an institution that works with SDR [https://en.wikipedia.org/wiki/Special_drawing_rights]; https://en.wikipedia.org/wiki/Special_drawing_rights]; so they are not going to "understand" Bitcoin. In a sense, they have their own Bitcoin. And I put understand in quotes because the IMF does get Bitcoin, Crypto and finance better than most countries. They understand that crypto is mostly bad news for weak countries because they are already having trouble with capital outflow as is.
splix 4y ago
IMF, as well as World bank and co, are anti-anything that could help a country to be less dependent on Wall Street. See https://en.wikipedia.org/wiki/Structural_adjustment#Criticisms https://en.wikipedia.org/wiki/Structural_adjustment#Criticis... and https://en.wikipedia.org/wiki/Enough_Is_Enough_(letter) https://en.wikipedia.org/wiki/Enough_Is_Enough_(letter) for examples.

manimino 4y ago

This is inaccurate. The IMF and other entities do not give aid or loans to dictatorships, because anything given to a dictatorship goes straight to the cronies at the top. El Salvador started having this problem as Bukele eliminated other branches of government. That's why he pushed Bitcoin adoption in the first place - to work around the problems caused by his desired form of government.

Bubble_Pop_22 4y ago
jrvarela56 4y ago
LOL they lend to democracies in third world countries like mine where the money goes straight to the cronies at the top (Panama; I know the term is outdated but us third-worlders call our countries third-world). My wife worked for a Ministry here and saw how the world bank shoved loans on non-functioning institutions and charged my country interest ON THE AVAILABLE FUNDS (like a credit line but it doesn't matter if you use it or not) despite them being executed or not. I dont know wtf these people are doing, but benevolent they are not.
- leviathan235 4y ago
  Yes, the IMF exemplifies the folly of global institutions. How long have they propped up kleptocracies like Argentina? "Democracy" is just a nice coat of paint over unbelievably corrupt countries where citizens will never see a dime of those loans yet will have to bear the burden of paying them back.
- lottin 4y ago
  So why did your country take the loan if it was so terrible?
  - saint_fiasco 4y ago
    I think the point is that the cronies at the top took the loan on behalf of the country. They don't care that the terms of the loan are bad because they will personally get rich either way and paying back the loan is somebody else's problem.

JumpCrisscross 4y ago

> real reason for the risk of default is that El Salvador was counting on a loan from the IMF and the IMF refused to make a loan to El Salvador while Bitcoin is legal currency El Salvador's dollar bonds started crashing right after the Bitcoin announcement, before the IMF bailed; Bukele had already snubbed the IMF six months before when he "fired five top judges and the attorney general" [1]. > Bukele is wildly popular in El Salvador This is correct [2]. I'm not certain how this makes me feel about supporting them when this inevitably fails. [1] https://www.bloomberg.com/news/articles/2021-11-22/bitcoin-bond-on-horizon-sends-el-salvador-s-dollar-debt-diving https://www.bloomberg.com/news/articles/2021-11-22/bitcoin-b... [2] https://www.reuters.com/markets/currencies/majority-salvadorans-approve-bukeles-leadership-poll-shows-2021-12-15/ https://www.reuters.com/markets/currencies/majority-salvador...

csomar 4y ago

> Despite his misadventures with Bitcoin, President Bukele is wildly popular in El Salvador. He seems to have successfully controlled crime in El Salvador. Usually, there is something behind these strong men if they are still popular. Homicide is down from 103 in 2015 to 17.6 last year. People will stick with such figure; it's not clear why previous rulers have failed. 103 is scary as shit number. Bitcoin will look like a blip in his mishaps from the citizenry point of view.