@Ridge
True, taking a loan from the IMF would leave them vulnerable to Western interests, or they could align with China and become dependent on them. Those loans come with conditions that can dictate spending, governance, and more. At best, it leads to paying interest, at worst, economic shock that can bring about regime change.
It’s encouraging to see them find an independent road.
@Clair
Ah yes, the infamous IMF. I remember how harsh they were when Bukele made that decision.
@Ridge
The lesson learned is taking risks can pay off.
Cassian said:
@Ridge
The lesson learned is taking risks can pay off.
Nah, but just following the rules rarely works out.
Maxwell said:
He has the right to say that, I remember the flood of articles that mocked him for deciding to hold bitcoin.
First they laugh at you…
Maxwell said:
He has the right to say that, I remember the flood of articles that mocked him for deciding to hold bitcoin.
First they laugh at you…
Then they fight you, and then they will try to copy you.
@Raj
And then we will win
Maxwell said:
He has the right to say that, I remember the flood of articles that mocked him for deciding to hold bitcoin.
I was one of those mocking him. It frustrated me that he was spending taxpayer money on Bitcoin while ignoring fixing roads, schools, and hospitals.
If he was using his own funds like Saylor, no one would say anything. My country has people living in slums earning barely 400 dollars a month. Still, our President is buying one Bitcoin daily?
The Bitcoin fund may be optimistic, but our government is still in debt. El Salvador has spent over 1.4 billion dollars trying to make Bitcoin legal tender.
El Salvador spent over 1.4 billion dollars trying to make Bitcoin legal tender.
Do you have any proof for this? I can’t find evidence to back up that claim.
I’m guessing you mean the lost funding from the IMF. If that’s what you’re saying, you don’t really understand how the IMF operates. They provide developing countries with cash that they have to pay back with interest. Those cash injections typically come with strings attached, putting outside nations in charge of your governance.
The IMF has historically made socioeconomic development harder and created dependencies on richer nations. Not taking loans from the IMF may cause short-term issues, but it’ll help in the long run.
What I don’t agree with El Salvador’s strategy is the ongoing purchases. They’re facing capital issues now, so they should consider selling some or at least reduce buying and invest in real economic improvements.
@Niall
Oh no, you shared facts… some people find that hard to handle 
Suki said:
@Niall
Oh no, you shared facts… some people find that hard to handle
My feelings are more important than facts though! 
Maxwell said:
He has the right to say that, I remember the flood of articles that mocked him for deciding to hold bitcoin.
What’s the main goal here, though, and how does it help the average Salvadoran?
@Clovis
It’s like why countries still keep gold.
CYNTIAH said:
@Clovis
It’s like why countries still keep gold.
So the average person gains nothing?
CYNTIAH said:
@Clovis
It’s like why countries still keep gold.
So the average person gains nothing?
Well, he gains stability if a government can avoid a domestic crisis by selling bitcoin or gold.
@CYNTIAH
Wouldn’t selling all their BTC crash the market?
Nev said:
@CYNTIAH
Wouldn’t selling all their BTC crash the market?
550 million in bitcoin is less than 0.1% of the total market cap. They could sell everything and only slightly influence the price
@Clovis
The government is holding an asset that should appreciate over time, allowing them to use those funds to boost their country without having to tax the citizens.
@Clovis
It probably won’t help the average Salvadoran lol. That’s why this doesn’t matter.
El Salvador still buys 1 Bitcoin each day just like they promised.