The International Monetary Fund urges El Salvador to drop Bitcoin status as legal tender

Watzupken

Posts: 570   +475
When BC came to El Salvador it was a mess - they had a 1 minute delay feature for people to see price - So was easy for profit takers to use real time arbitrage to make profit - on both selling and buying.

Plus it's full on stupid . You want some of the poorest people in the world to hold their wealth in a Yoyo Ponzi scheme - buy at $60000 , now $30000 - - how you going to afford your seeds to grow , your kids books for school . Poor people don't want a joke , they want certainty .
If was facilitated mainly to reduce bank transfers back from say The USA - a noble cause , other countries like Philippines rely on such money as well.
Why not setup a Bank in The USA or Emirates etc and get commercial settlement rates .
I'm sure most developing countries run USD , Euro accounts anyway to pay for imports. stability etc .
Then give citizens dual currency accounts - with nominal conversion fees
Absolute stupidity
While I may not know what happened after they adopted BC as a legal tender, but in my mind, I feel BC can never full replace fiat currency. The main reason is its volatility. Fiat currency is also subjected to volatility, but it generally takes time for a currency to plunge as much as cryptocurrency. The country using cryptocurrency have absolutely no control over where the currency will go. In short, the nation is basically at the mercy of ultra rich and influential people that can move the prices of crypto.
By making your citizens use a cryptocurrency, it needs to be stable. You can't be earning XX worth of BC this month, and take a cut of 50% a month or 2 later. The government's coffers should not have xx amount of money today, and only to find a fraction of it remains a couple of months later because of their bad bet. The government don't own the taxpayers' money in the coffers, so they are essentially using other peoples' money to bet on crypto. If they make money, they can compensate themselves well. But if they lose money, they will just tell the people, "that's too bad".
 

NightAntilli

Posts: 891   +1,171
Honest question. Do you really honestly believe that the IMF is actually concerned with any country's well-being?
If the IMF actually believed that Bitcoin could not succeed, they would simply wait for El Salvador to collapse on itself and make it a prime example.
The fact that they are trying to push them to away from Bitcoin shows that they are actually worried about their own crumbling influence.
 

captaincranky

Posts: 18,527   +7,370
Honest question. Do you really honestly believe that the IMF is actually concerned with any country's well-being?
If the IMF actually believed that Bitcoin could not succeed, they would simply wait for El Salvador to collapse on itself and make it a prime example.
The fact that they are trying to push them to away from Bitcoin shows that they are actually worried about their own crumbling influence.
Is El Salvador a poor or rich country?

El Salvador is the fifth-poorest country in North America with a per capita GDP of $4,131. El Salvador has a small elite population that became wealthy through the country's coffee and sugar production. On the other hand, about 40% of the population falls below the poverty line.

Why don'y you lend El Salvador some of your vast collection of bitcoin or mining equipment?.

After all, "sharing is caring".

Now why on earth would the IMF refuse to lend money such a prosperous nation? Oh I know, those mean old basta*ds have their minds set on sinking bitcoin.
 

TsVkK

Posts: 97   +56
Now why on earth would the IMF refuse to lend money such a prosperous nation? Oh I know, those mean old basta*ds have their minds set on sinking bitcoin.
Yeah, it couldn't possibly be that they are worried about them becoming insolvent in a crypto crash and not being able to repay their loan.
 

Danny101

Posts: 2,026   +838
Governments getting loans from the central banks is the reason why we're all in this mess. These loans are apparently like crack for governments, who can't ever pay them back, mortgaging away the freedoms of their citizens.