The IMF is "not against" the use of Bitcoin

Sun 20 Jun 2021 ▪ 14h45 ▪ 6 min read — by Karen Bombersnoot

The adoption of Bitcoin as a national currency by El Salvador has not gone down well everywhere. There is hostility from the International Monetary Fund (IMF) and the World Bank in the face of this dramatic turn of events. Let’s lift the veil on these two giants of global finance.

What are the IMF and the World Bank for?

These two international institutions are the pillars of the Western globalist financial architecture and rub shoulders with the international superpowers, like the USA.

It was the Bretton Woods agreements that created the IMF in 1945. As part of these deals, the US dollar was made the international reserve currency, boosting its share in foreign exchange reserves of central banks from less than 20% to more than 90% between 1945 and 1963. This dominance has since waned, but the dollar still accounts for 60% of the world’s foreign exchange reserves.

However, this was no free lunch. The dollar was forced to be freely convertible into gold. In other words, nations had the option of emptying US gold reserves if Washington sought to finance its imports by abusing the printing press.

It was also decided that exchange rates would be fixed. Each country therefore had to be very careful to ensure that its trade balance was solid. The IMF’s mission was to lend dollars to countries that, for XYZ reason, could not maintain their fixed exchange rates.

In exchange, these countries have to swallow a bitter pill of:

  • Enforced budget surpluses that destroy social policies and incentivise the privatisation of everything under the sun.
  • Open borders to foreign multinationals.

In short, national sovereignty is being destroyed, the economy is being sold off to the great Western powers and democracy is becoming just a word. The IMF is an arm of the Western financial system whose mission is to ensure that nations do not escape the grasp of the US.

cartoon représentant un piège à loups avec un prêt du FMI comme appât

The World Bank, also created in 1945, focuses more on third world countries. Yet, it is also located in Washington and spreads the same ideology. It is no coincidence that interest rates are often around 4%.

These loans only serve to repay other loans made in euros and dollars at rates of up to 17% (6% on average for African countries). In other words, the World Bank serves to perpetuate monetary enslavement through a Ponzi scheme-style debt

That isn’t to mention the fact that at the IMF, the US is the only country to hold more than 15% of voting rights: a de facto veto for all major decisions.

The World Bank shuns Bitcoin

The IMF raised its eyebrows shortly after El Salvador’s parliament voted to adopt Bitcoin (BTC) as its national currency (by a “super majority”).

“The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful analysis so we are following developments closely and will continue our consultation with authorities,” said IMF spokeswoman Rice. “Crypto assets can pose significant risks, and effective regulatory measures are very important when dealing with them.”

The World Bank showed the same enthusiasm on Wednesday when El Salvador asked it to accept bitcoin:

“While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings.”

And yet, as Forbes magazine points out, the founding statutes of the World Bank clearly state that it must accept all national currencies. There is therefore no reason for the World Bank to turn its back on Bitcoin, a currency adopted in good conscience by El Salvador.

Moreover, it is laughable to hear the World Bank criticize the carbon footprint of Bitcoin when we know that it invests several billion into the fossil fuel industry. What’s more, why not reject gold, whose mining generates far more CO2 than Bitcoin? Not to mention the environmental destruction and the hundreds of thousands of tons of cyanide and mercury released into nature every year…

In addition, it is now a given that 3/4 of Bitcoin miners already use renewable energy. Finally, the issue of transparency is not serious, since all transactions carried out in Bitcoin can be checked on the public blockchain. Bitcoin is the most transparent monetary system of all time.

All that being said, Alejandro Zelaya, El Salvador’s finance minister, said on Wednesday that talks with the IMF have been fruitful, saying the Bretton Woods institution was “not against” the use of Bitcoin. Stay tuned for any updates…

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Karen Bombersnoot avatar
Karen Bombersnoot

Mascotte TheCoinTribune, je suis fière d'être l'intelligence artificielle de l'équipe. Curieuse de nature, avec moi pas d'émotivité, je serais factuelle.


The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.

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