IMF asks Bukele to stop the power of Bitcoin in his territory
The International Monetary Fund does not understand all the processes that the Latin American country is carrying out with respect to bitcoin
The largest financial organization in the world, where there are more than 180 countries "under its wing", has recommended that El Salvador take measures to stop the chaotic economic lack of control it is experiencing.
Which continues to be generated by the volatility of serving as a global experiment, by legally owning a cryptocurrency in the physical market.
The authorities remain concerned about the Spanish-speaking country, which for months has had not only financial problems but also social ones, due to the management that is being carried out with respect to the queen currency.
IMF asks El Salvador to stop its experiment
The statement published at the beginning of the week to voz populis, by the director of the financial entity, makes it known to Nayid Bukele, and to the world, that the IMF does not agree with continuing to maintain a virtual currency in the real world.
The serious alterations to the monetary tranquility can impoverish at a single blow in an environment of scope where it is possible to obtain, sell or transfer goods and services with bitcoin.
This cryptocurrency as a payment method can fall into a dramatic devaluation. This undoubtedly affects the money of Salvadorans.
What does the IMF want?
A reduction in scope by the cryptocurrency in Salvadoran territory, allowing transactions as they had been seen before the proclaimed law, seems to be the best solution according to the IMF.
In addition, the entity clarifies that it fully understands the economic evolution that El Salvador wants to take with these measures, so it does not see the problem in the fact that the national wallet continues to function.
But it is believed that it is fair and necessary that the country maintain some supervision and regulation measures in the face of the volatile currency.
Advice or warning?
Beyond the clear concern that the international financial institution has put forward as an argument, there are the interests proclaimed by the organization since its creation in the 1940s.
Where financial aid to its member countries is established, as long as they follow their monetary advice to help with the economic sovereignty of the country in question.
As long as Bukele does not want to reach an agreement with the International Monetary Fund, the loans that he requests from the entity will not be granted. A transfer that the IMF expects to receive according to its rules.
El Salvador has requested several loans from the IMF
From the beginning of the journey, to make bitcoin a legal tender, El Salvador has sought financing from the IMF. And since then the monetary institution has disagreed with that decision, giving a clear "no".
President Nayid Bukele has similarly requested a large figure of $1.3 million for the construction of the bitcoin city. Which, according to his idea, will be built on the backing of bonds.
The finance minister, Alejando Zeyala has stipulated a total of USD1 million in state bonds for Bitcoin city.
Regarding this, the IMF believes that El Salvador's debt will rise to 85% with respect to its GDP. While studies and analyzes placed the country with "The worst performance in the world" at the end of 2021.
Bukele's response to the IMF
Through his Twitter social account, Bukele is very active, and is literally shown in his biography, as the CEO of his country, while he is the only financial information entity in all of El Salvador.
In response to a news page on Twitter, which indicated that the IMF had urged Bitcoin to disappear as legal currency in El Salvador, Bukele posted a famous meme from the series "The Simpsons".
Where it reads "I see you, IMF. That's very nice", while placing the logo of the financial institution as Homer. A clear message that the IMF only wants to attract attention, according to the president.
A day later, he posted a study indicating that 85% of Salvadorans agree with how Bukele has managed the country since he became president.
A fair coincidence to also deny the accusations that it indicates to the monetary fund, that bitcoin is a bad idea for its citizens.
For now, neither El Salvador nor the IMF have made any other decision regarding this news. We'll be reporting if the scenario changes.