El Salvador Bitcoin: Who Needs the IMF When You Have Bitcoin? “The Dark Knight Rises,” the third Batman picture directed by Christopher Nolan. Is usually regarded as the poorest chapter in the series. In part because it might be seen as a celebration of neoliberal dictatorship. The villain, Bane, tasked with taking over Gotham City, wiping away all financial records. And reigning over a sort of mega-Occupy movement, according to the premise of the film. When Batman responds by engaging in a series of moral concessions. That he explains as necessary exceptions to a more broadly just system. He called upon to defend the system as a whole.
It has been decades since the International Monetary Fund assumed the position of Batman in the international order. Despite the fact that they supposedly intended at fostering democracy and free markets. The reforms demanded by the International Monetary Fund. In exchange for its loans have typically included significant reductions in social spending and industrial policy. The consequences are frequently catastrophic. The International Monetary Fund’s (real-world) death toll is significantly larger than Batman’s.
With a low per capita income and a high level of debt, El Salvador has been negotiating. With the International Monetary Fund (IMF) for a $1.3 billion loan from the IMF. Uncertainties have arisen as a result of the country’s recent introduction of bitcoin as legal money. The International Monetary Fund (IMF) expressed dissatisfaction with that notion.
El Salvador issued a $1 billion “Bitcoin Bond” on Monday, which has the potential to provide. At least a partial end-run around the International Monetary Fund. Emphasizing the reasons why bitcoin made the IMF so uncomfortable in the first place.
The bond can be bought for $100 in bitcoin or tether
Purchases of the bond can made in $100 increments using bitcoin or tether as payment. It will issued by Bitfinex, a cryptocurrency exchange that is effectively stateless and unregulated. As a result, it is likely that there are minimal, if any, restrictions on who can invest in this bond. Either in terms of source or amount.
That indicates one thing: El Salvador will definitely sell out of this bond. And it will almost certainly be able to issue another round in the near future. It will easily replace the $1.3 billion it received from the IMF. Even after accounting for the fact that around half of the proceeds. From the first bond issue will invested in a bitcoin fund.
There is no need for any additional explanation than to state that “Bitcoiners are nuts and rich.” And that they would gladly pump money into this small country for the sake of amusement. For the sake of full disclosure, any one of these trials that succeeds is another win for bitcoin. Making participation a question of enlightened self-interest as well. Keep in mind that an Ethereum DAO recently collected $40 million for what was essentially a vaguely civic-minded hoax. $1 billion for a genuine bond with an actual return is nothing in the grand scheme of things.
Let’s put aside the much-hyped “Bitcoin City” that El Salvador has stated it intends to construct. With the remaining half of the first bond. That’s largely a marketing ploy, to be hone. At best, the country will receive a couple of power plants, a server farm, and an IHOP for its $500 million investment. And that’s perfectly great with me! Assuming, of course. That El Salvador follows through in broad terms.