It depends. While bitcoin is a potential investment, investing in it is not always the right decision. If investing and holding bitcoin has such great benefits as you say, El-Salvador would have invested in it since 2021, but why do they still need to borrow money from the IMF?

Do you know what El Salvador is facing? They are facing high public debt, budget deficit...and bitcoin cannot help them in this case.


So far, the IMF has not disbursed any loans, I would not be surprised if El Salvador breaks its rules and accepts the IMF's request. Because the economy and people's lives must still come first.

Anyone who has some knowledge of IMF works understands that the interest rates that they charge are far lower than the global benchmark across the financial institutions. IMF doesn't think that El Salvador can pull themselves out of poverty by using Bitcoin, or similar investments. They are meant for the development of their country, and purchasing Bitcoins doesn't help with that at all.

IMF would love to have countries to pay off their loans ASAP, because both sides stands to benefit. They aren't loan sharks and this is a conspiracy that is clearly disproven.

There's no reasonable reason to why IMF would ask El Salvador not to buy Bitcoin, the country already knows their ground for such investment and the advantage they will get for investing into Bitcoin can not be served by IMF, regardless of the loan they were to give, but the country can not abide by all their terms, at least they also have their own reasons for adopting Bitcoin.

I think it's in the loan agreements not to invest in volatile assets, but Bukele knows exactly what he's doing and is going against the agreements to purchase Bitcoin everyday. I am free to predict that the reason he's making their purchases public is because of his Bitcoin City dream, so as to show strong support for Bitcoin which is their second legal tender and keep watering the interests of potential investors in Bitcoin City. Aside this I don't think there's any reason a government should make their accumulation public since Bitcoin is better treated with great anonymity and privacy.

This is not a new news or discussion that is being talked about but the IMF banning El Salvador with its Bitcoin has been going on for a long time because Nayib Bukele is still holding on to his belief in their adoption of Bitcoin.
Data-wise and logically, the IMF gives a reason that makes sense when people read it. The problem is whether they believe it when they juxtapose what the IMF says with the reality in El Salvador.

Again, poor countries are not forced to hold their currencies in a certain currency. In fact, any country that is less well off is likely not going to do so, because it doesn’t benefit their monetary system. This is not a conspiracy either.

You practically outlined the clear reason why IMF is against this entire proposal in the first place. Sustainable economic growth is not achieved in the long term by being exposed to unnecessary risks with uncertain returns. IMF is absolutely right in enforcing this and there is no argument that Bitcoin could be better than developing their subpar economic system. This isn’t a gamble that anyone, much less a country that is so heavily reliant on loans and aid should take.

IMF does not grant loans without collateral, and this is its policy, which everyone knows, since only countries in a dire economic crisis borrow from it. What guarantees it will repay the loan plus interest? The only guarantee is the country's commitment to implementing structural reforms that limit public spending and direct the loan toward clear objectives, which in El Salvador's case is closing the budget deficit. I'm not playing devil's advocate here because I'm aware of the danger these loans pose to national sovereignty, but we must approach the issue rationally and logically.

Don't go to the IMF if you can't afford its terms. That's easy.

Ironic that El Salvador is capable of finding the resources to spend on purchasing Bitcoin, which will serve as a reserve currency, but at the same time, it has a budget deficit for which it has found no solution other than going to the IMF to request a loan. This is absurd. If the economic crisis in El Salvador continues under these conditions and policies, we can expect to see El Salvador in the Paris Club or the London Club, where it will lose its sovereignty completely.

But here’s the question - if the IMF is truly focused on helping countries and stimulating their growth, then why is it so scared of a technology that can provide economic independence and a new level of financial freedom? Bitcoin isn’t just an investment - it’s a tool for those seeking an alternative to outdated systems.
And yes, aid is important, but can’t we also think about long-term sustainability? To me, this isn’t just about “stacking sats,” it’s a strategic choice. Time will tell.

Bitcoin doesn't provide economic independence or financial freedom. The variability of Bitcoin prices means that the economy is directly exposed to the huge fluctuation of Bitcoin prices, and that is a problem especially when the Bitcoin prices can potentially fluctuate 10-20% in a single given day. This exposes the monetary system to unnecessary risk. In addition, this also further exacerbate the issue of giving up monetary control and reducing the ability of the country to enact economic policies through their monetary system. This has both short and long term repercussions, and they aren't good for a country that small and reliant on foreign aid.

It's perfectly fair for IMF to be wanting their debtors to be pursuing known and safe areas of economic growth. This provides a more sound reason for them to continue lending to such countries and directly reduces their reliance on similar foreign aid in the future.

Here's a quick reality check: Poverty is rampant in El Salvador, Bitcoin hasn't helped much in their development of the GDP. In fact, even if they were to put all their funds in Bitcoin and Bitcoin were to become far more valuable, the effect would be one-off and it is obviously not sustainable. In comparison, the historical development of countries has shown far better results.

If you want to try a new, radical and unproven method to improve your country's economic standings, you should use your own money. The ground sentiments in El Salvador is that their life hasn't improved, and that they are not convinced that Bitcoin is the solution. Don't call out IMF if you want to continue to buy Bitcoins, they can lend to whoever they want. They can seek another willing lender if they would love to continue stacking sats.