The IMF and Bitcoin, a history of power struggles.

Hello everyone.

Yesterday I commented on how the FED by raising interest rates can weaken the economies of developing countries and also how this rise is a strategy to give greater relevance to the dollar in a world where it has less and less hegemony.

But, today while I was getting informed about what was happening in the crypto space, I was surprised by a news about what is happening in Argentina and the IMF, since Argentina wants to look with more favor to the Bitcoin, but the IMF denies it and even promises charges if it comes to advance in these agreements on bitcoin and cryptocurrencies in Argentina.

But this power struggle is the same that happened in El Salvador when Nayib B started the process to implement the bitcoin law, and the IMF wanted to discourage it by saying:

"We do not recommend it. In the short and long term the costs and risks greatly outweigh the benefits and the financial stability of the country is put at risk."

Furthermore, the IMF was negotiating with the savior that if they stopped the bitcoin law they could expedite him the $1.3 billion loan that the president was already requesting. But despite the threats and negotiations, El Salvador has remained firm in its position in favor of bitcoin and we have seen that so far it has been the opposite for the Central American country, as it has seen its trade and tourism increase since the implementation of this law, in addition to being in the sights of different foreign investments and has development plans to be the Singapore of Latin America.

Now, other countries like Argentina, with a weaker and weaker economy and where monetary policies have done nothing but continue to weaken the economy, want to seek a more decentralized solution as El Salvador has done. That is why more and more individuals are looking for profitable outlets such as cryptocurrencies, since in addition to helping the population to safeguard the value of their money, it allows them to mobilize money in a decentralized way and very quickly and without intermediaries.

But as the debt situation is extremely serious in Argentina, owing the IMF more than $44 billion, the Senate has approved some clauses of an agreement with the IMF that contains a requirement contrary to bitcoin. And these clauses respond to the IMF's conditionality when lending money to a country.

When a country obtains credit from the IMF, the government commits to adjust economic policy to overcome the problems that led it to request financial assistance from the international community. The terms of these loans also serve to ensure that the country will be able to repay the resources to the IMF, so that these resources can be made available to other member countries in need. Lending reforms passed in 2009 simplified IMF conditionality to help countries better identify with sound and effective policies.

In other words, even if Argentina can use cryptocurrencies to get out of the crisis or mitigate it, they cannot do so since the IMF does not want to continue losing the control and sovereignty it has in the financial world or the global economy, since cryptocurrencies represent a great risk to that power. That is why what the IMF does most in any country to which it lends money is to discourage the use of cryptocurrencies, mentioning that in this way it would be preventing money laundering, informality and disintermediation and macroeconomic risks for the

"The IMF Hates Bitcoin Because It Loves Total Control"

The IMF hates cryptocurrencies because it takes away the control that for so long elites and financial institutions have had, so I agree with what Shawn Amick talked about in his article on this, The IMF hates bitcoin or cryptocurrencies for 2 fundamental reasons:

• 1 - Bitcoin is decentralized: there is no one who can control it not even a union of manipulators. And since the IMF is an entity that controls the economy that it indebts, it fears losing control over the masses and the money it can generate, since lending money degrades the currency of that country, which ties it to higher and higher interest rates and endless installments of payments.

• 2- Bitcoin has a programmatic monetary policy: We all know how many bitcoins are in circulation, how many are left to be mined, how many there will be in total, none of these numbers can be made up and that is what terrifies the IMF, as they use the infinite supply of money to gain power, and if they cannot control bitcoin they cannot control the masses or exert influence.

Finally, bitcoin represents the end of an era of global economic control, as bitcoin is the key to true freedom from financial institutions that have long been in power, in fact, the pandemic revealed how weak and how strong cryptocurrencies and Defi can be, giving people the opportunity to generate income while the traditional economic system falls. These dominoes are already starting to fall, very soon we will see the final outcome and we will see cryptocurrencies triumph over these corrupt and centralized institutions.

In the meantime, the struggle of the power of the masses against the elites continues, but it is a battle that already has a clear winner.

Thank you very much for reading.