Following a visit to El Salvador, the International Monetary Fund (IMF) suggested the country reconsider its plans to increase its exposure to Bitcoin (BTC). The community responded to the IMF’s suggestion with various messages condemning the organization.
From dismissing the IMF suggestion as a simple case of spreading fear, uncertainty and doubt, or “FUD”, to interpreting it as a strong bullish signal for BTC, several members of the crypto community took to social media to express their sentiments on IMF efforts to discourage El Salvador’s plans with Bitcoin.
In a tweet, a member of the community argued that the IMF measure is a way of “scaring other countries” with the example that El Salvador has set. The Twitter user also urged others to embrace BTC and help shut down central banks. The tweet says:
what IMF meant was that #The Savior‘s #Bitcoin benefits materialized and the country paid off its debt, so now the IMF wants to scare other countries away from that excellent example
Help a central bank close shop Adopt and start using #bitcoin in your daily life https://t.co/j7yVY7mNWd
— Bitcoin Spot GR (@bitcoinspotGR) February 11, 2023
Influenced by El Salvador’s resilience despite a relentless bear market, many other countries are becoming more Bitcoin-friendly. For example, on November 29, 2022, the Brazilian Chamber of Deputies passed a law legalizing cryptocurrencies as a payment method. The Brazilian president signed the bill on December 22, and it is expected to be enacted before the third quarter of 2023. However, unlike in El Salvador, the law does not make BTC and other cryptocurrencies legal tender in the country, but they will be recognized as a method of payment.
Meanwhile, another member of the community also commented on the matter, pointing out some inconsistencies of 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 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 go ahead regardless of the IMF suggestion. On the other hand, a member of the community argument that this is a strong bullish signal for Bitcoin. According to this community member, the IMF’s grip on the developing world is slipping away.
El Salvador has announced many plans for Bitcoin in the country. On November 17, Salvadoran President Nayib Bukele announced his intention to buy 1 BTC a day. On January 11, the country established a legal framework for a Bitcoin-backed bond, dubbed the “Volcano bond,” to be used to pay off the national debt and finance the construction of “Bitcoin City.”
Bitcoin has experienced many other advances of late. On February 14, Bitcoin’s average block size hit a new all-time high. The increase follows the creation in mid-January of Bitcoin’s non-fungible token protocol, called Ordinals.
As the Bitcoin ecosystem continues to grow in terms of capacity and user base, it continues to strengthen its position in the midst of an increasingly bloated economy.
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