IMF wants El Salvador to reconsider Bitcoin exposure: Community reaction

After a visit to El Salvador, the International Monetary Fund (IMF) suggested that the country reconsider its plans to increase the share of Bitcoin (BTC). The community has responded to the IMF’s proposal with various messages calling for the organization.

From dismissing the IMF proposal as a mere case of spreading fear, uncertainty and doubt, or “FUD,” to interpreting it as a strong bullish signal for BTC, various members of the crypto community have taken to social media to express their views on the IMF’s efforts to thwart El Salvador’s bitcoin plans. .

In a tweet, one member of the community said that the IMF’s actions are a way to “scare other countries” from the example set by El Salvador. The Twitter user also urged others to accept BTC and help shut down central banks. They tweeted:

Influenced by the resilience of El Salvador despite the relentless bear market, many other countries are becoming more Bitcoin friendly. For example, on November 29, 2022, the Brazilian Chamber of Deputies approved a law legalizing cryptocurrency as a payment method. The Brazilian President signed the bill on December 22 and is expected to be passed before the third quarter of 2023. However, unlike in El Salvador, the law does not make BTC and other cryptocurrencies legal tender within the country, but will be recognized as legal tender.

Meanwhile, another member of the community also commented on this issue, pointing out some inconsistencies on the part of the IMF. For example, according to Bitcoin Xoe, the IMF has acknowledged that El Salvador’s GDP is projected to grow above the historical average. Despite this, the organization recommended abandoning bitcoin due to economic risks.

Another twitter user described IMF efforts as “FUD”. The community member believes that Bitcoin will move forward regardless of the IMF proposal. On the other hand, community member argued that this is a strong bullish signal for bitcoin. According to a community member, the influence of the IMF on developing countries is waning.

Does the IMF have a vendetta against cryptocurrencies?

El Salvador has announced many plans for bitcoin in the country. On November 17, Salvadoran President Naib Bukele announced his plans to buy one BTC per day. On Jan. 11, the country set the legal framework for a Bitcoin-backed bond dubbed “Volcano Bonds” to be used to pay off sovereign debt and fund the construction of a “Bitcoin City.”

Bitcoin has gone through many other changes lately. On February 14, the average bitcoin block size hit a new all-time high. The surge followed the creation of a non-fungible Bitcoin token protocol called Ordinals in January.

As the Bitcoin ecosystem continues to grow in terms of capabilities and user base, it continues to strengthen its position in the ever-inflationary fiat economy.

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