Understand the implications of Bitcoin's downfall in El Salvador. Learn about the failed economic bet and its impact on the country's financial stability.
In December, the government struck a $1.4 billion loan deal with the International Monetary Fund (IMF) that scaled back its bitcoin embrace after the lender urged officials to limit its exposure. The lender specifically advocated making acceptance of bitcoin voluntary for the private sector, which is spelled out in the hastily-approved law.
They still are keeping all of their reserves. Buying coffee with bitcoin is now optional for seller, and not essential for either customer convenience or bitcoin value.
Yeah but one of the goal was to replace daily use of USD by bitcoin this is the part they are stopping apparently. It seems they will continue to have it as a reserve.
Dumbest shit I ever heard. Bitcoins transaction fees have been so fucking high since well before this happened that it is impossible to use it as reasonable currency. Even Eth has some high tx fees nowadays - something intended for daily use shouldn’t cost whole dollars per transfer.
Didn’t they double or triple their trade?
The IMF gave El Salvador mucho dineros to abandon Bitcoin because the IMF wants the USD to be the global currency
https://www.reuters.com/world/americas/lawmakers-el-salvador-rush-new-bitcoin-reform-after-imf-deal-2025-01-30/
Sounds more like they’re “abandoning” it by selling for a huge profit
They still are keeping all of their reserves. Buying coffee with bitcoin is now optional for seller, and not essential for either customer convenience or bitcoin value.
Yeah but one of the goal was to replace daily use of USD by bitcoin this is the part they are stopping apparently. It seems they will continue to have it as a reserve.
Dumbest shit I ever heard. Bitcoins transaction fees have been so fucking high since well before this happened that it is impossible to use it as reasonable currency. Even Eth has some high tx fees nowadays - something intended for daily use shouldn’t cost whole dollars per transfer.
There is low fee lightning network which was part of El Salvador adoption. It is more complicated though.