Why the IMF is wrong about El Salvador’s Bitcoin experiment

YahooFinance picked up this opinion by Bryan Hernandez from forkast.news. Highlights:

"In the worlds of global finance and cryptocurrencies and everywhere in between, El Salvador’s adoption of Bitcoin as legal tender has been at the center of a robust global debate regarding the mainstream adoption of cryptocurrencies. For some, the country’s actions are a massive step forward toward the next generation of global finance, while for others they are a massive error in economic policy.

Less often examined, and perhaps more important, are the reasons why El Salvador is pursuing this unique path. In short, the course they have chosen seems aimed at addressing domestic issues aggravated by dollarization and, at a more fundamental level, at bolstering their own economic sovereignty.

Few would question that there is some degree to which El Salvador’s economic sovereignty was compromised in the wake of dollarization and complicated by the country’s interactions with the International Monetary Fund. Reasserting its economic sovereignty will provide an opportunity for El Salvador to address long-standing economic issues that seemed impossible to fix in the current state.

Given the challenges of dollarization, it is little wonder El Salvador’s leaders have sought to experiment with Bitcoin to strengthen their control over their country’s economy. Reasserting some measure of monetary sovereignty might give them the ability to invest more robustly into their country through social programs and infrastructure projects without relying on excessive borrowing or unsustainable levels of remittances. At the very least, it puts them in a position to sink or swim on the merits of their own policies, which is the only real promise of self-sovereignty."

Source credit and full story - https://forkast.news/imf-is-wrong-about-el-salvadors-bitcoin-experiment/

https://finance.yahoo.com/news/why-imf-wrong-el-salvador-081537378.html