Following a visit to El Salvador, the International Monetary Fund (IMF) suggested that the country reconsider its plans to increase exposure to Bitcoin (BTC). The community responded to the IMF’s suggestion with several messages calling out to 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. about IMF efforts to discourage El Salvador’s plans for Bitcoin.
In a tweet, a member of the community argued that the IMF measure is a way to “scare other countries” from the example that El Salvador has set. The Twitter user also urged others to embrace BTC and help shut down central banks. They tweeted:
what the IMF meant was that #The Savior‘s #Bitcoin the 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 Point 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. Unlike in El Salvador, however, the law does not make BTC and other cryptocurrencies legal tender within the country, but they will be recognized as a means of payment.
Meanwhile, another member of the community also commented on the subject, pointing out some inconsistencies of the IMF. For example, according to Bitcoin Xoe, the IMF acknowledged that El Salvador’s GDP is projected to grow above the historical average. Despite that, the organization recommended giving up Bitcoin because of the 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 the community member, the IMF’s grip on the developing world is slipping away.
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 a daily BTC. On January 11, the country established a legal framework for a Bitcoin-backed bond, dubbed “Volcano Bond,” to be used to pay off sovereign debt and finance the construction of “Bitcoin City.”
Bitcoin has had many other developments lately. On February 14, Bitcoin’s average block size reached 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 in the midst of an ever-inflating fiat economy.
