According to the Financial Times, El Salvador is planning to amend its bitcoin policy in order to receive a loan from the IMF. I did a DYOR, and here we go:
Bitcoin or Loan situation
It is believed that El Salvador is running out of cash, and Nayib Bukele is striving to find a solution. However, the IMF, the World Bank, and the Inter-American Development Bank all urge El Salvador to trim bitcoin's legal tender status.
In my opinion, Bukele should not give in to such a demand because El Salvador will have to repay the loans with interest, increasing dependency instead of financial freedom.
Cryptoverse solution
After much thought, I came to the conclusion that Bukele has to amend his Bitcoin policy, but not according to the wishes of the IMF or the World Bank, but to the situation favorable to the Cryptoverse.
There are two solutions to this:
- Bukele just has to use his Bitcoin as a reserve, and seek support from Bitcoin maxis like Michael Saylor.
OR/AND
- Bukele has to seek full support from the Cryptoverse for which he only needs to recognize some other cryptos (like Ethereum), this will give them support from the Altcoin world.
The Bitcoin policy has saved El Salvador from debt and poverty. Leaning to fiat cash will automatically put El Salvador in a debt trap.
Originally published at Grill, and on Wubits as threads.
