IMF Wants El Salvador To Reassess Bitcoin Exposure: Community Reaction

by · February 15, 2023

After a visit to El Salvador, the International Monetary Fund (IMF) suggested the country reconsider its plans to increase its exposure to Bitcoin (BTC). Society responded to the IMF’s proposal with various messages calling out the organization.

From dismissing the IMF’s proposal as a simple case of spreading fear, uncertainty and doubt, or “FUD”, to interpreting it as a strong bullish signal for BTC, various crypto community members took to social media to express their feelings about the IMF’s efforts to discourage El Salvador’s plans for Bitcoin.

In a tweet, a community member claimed the IMF’s move is a way to “scare other countries away” from the example set by El Salvador. The Twitter user also encouraged others to adopt BTC and help shut down central banks. They tweeted:

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

Meanwhile, another community member as well commented on the question, calling out some inconsistencies from the IMF. For example, according to Bitcoin Xoe, the IMF acknowledged that El Salvador’s GDP is expected to grow above the historical average. Despite that, the organization recommended giving up Bitcoin over financial risks.

Another Twitter user described The IMF’s efforts as “RD&D.” The community member believes that Bitcoin will march on regardless of the IMF’s proposal. On the other hand, a community member argued that this is a strong Bitcoin bull signal. According to the community member, the IMF’s grip on developing countries is slipping.

Related: Does the IMF have a vendetta against cryptocurrencies?

El Salvador has announced many plans for Bitcoin in the country. On November 17, Salvadoran President Nayib Bukele announced his plans to buy one BTC daily. On January 11, the country established a legal framework for a Bitcoin-backed bond, called the “Vulcano Bond,” which will be used to pay off national debt and finance the construction of “Bitcoin City.”

Bitcoin has had many other developments recently. On February 14, Bitcoin’s average block size hit a new all-time high. The increase follows the creation of Bitcoin’s non-fungible token protocol called Ordinals in January.

As the Bitcoin ecosystem continues to grow in terms of capacity and user base, it continues to strengthen its position amid an ever-inflating fiat economy.