Why the IMF Hates Bitcoin


The International Monetary Fund (IMF), as well as a series of other financial institutions, really don’t like Bitcoin. So let’s do business as usual, thinking about what the IMF is and why it matters.

What is the IMF?

The IMF and the World Bank are like the parallel universe versions of Shaggy and Scooby-Doo. They have no idea what they’re doing, and yet the decisions they make determine the end of the show. The only difference is, no one wants to watch this version of the show, as Shaggy and Scoob continue to degrade your currency into oblivion.

Sticking to the IMF alone for this article, its mandate is as follows:

For simplicity, let’s just imagine that the IMF is dictating global monetary policy in the short to medium term. It reacts to what comes its way at all times and “influences” world markets. This, of course, requires a great deal of control, or centralization, if you will.

So who makes up the IMF?

It’s no secret that a bunch of the rich are influencing monetary policy around the world. This is public information it’s easy to find. Obviously, these guys have good reason to keep the status quo.

So, like I said, the IMF doesn’t like Bitcoin. But why?

Prevent the Fourth Turn

For those unfamiliar with the ‘fourth turn’ is a concept that asserts that there is a cyclical progression in society, usually with around 20 years at each turn, the last of which results in a crisis that overthrows the old ones. power systems and ushers in a new era.

Bitcoin is often seen as the fourth turning point of crisis by overthrowing old financial institutions (here is a summary).

Following this path, over the past two years the world has been rocked by a pandemic that has led to the degradation of many global currencies with the US dollar being very clear, as this article by Jerry Goddard points out. The IMF knows all of this and has made it clear that it intends to stay in control.

July 29, an article was published on the IMF blog, including the following quote:

It’s honestly a bit sufficient how intrusive this statement is. Obviously, through the central banks of nation states, the World Bank, and other institutions, the IMF’s goal is to maintain control. In classic Bitcoiner’s phraseology: “Bitcoin solves this.

But seriously, that’s what Bitcoin was made for.

How does Bitcoin solve this?

I’ll spare everyone the details of redesigning what Bitcoin is. Let’s stay on the basics:

1. Bitcoin is decentralized. No group of developers, miners or companies can come together to manipulate the protocol. If consensus isn’t reached, hell, it doesn’t happen. Naturally, the IMF, which settles short- and medium-term economic problems between countries by issuing loans on the basis of the currencies it constantly depreciates, probably does not want the money supply to be controlled by an unbeatable algorithm. which makes you play the game like Bitcoin wants to play.

2. Bitcoin has a programmatic monetary policy. We know how many bitcoin there are now, we know how many there will be in total, and we know when the new bitcoin will be issued. We know all of this, and it’s publicly available to anyone who’s willing to watch. Not being able to control the supply or its delivery is a critical concern for any central authority attempting to maintain power in the existing system. They can’t control Bitcoin’s protocol or system, and they can’t control bitcoin’s currency either. These would be transparent reasons for not wanting him to succeed.

The IMF wants to launch the Bitcoin panic

Read this first part again: “Digital currency must be designed” for government control. The IMF will claim it is for consumer protection. We constantly hear about the looming regulations on the darkening horizon.

And when discussing digital assets, the IMF made sure to speak directly to Bitcoin later in the post:

The only named cryptocurrency was bitcoin. (I can hear you maxis, I know you don’t like being called Bitcoin “crypto”.) It was named because it is feared. It presents itself to the IMF as an unstoppable algorithm designed as a relic of the new era. Degradation and the financial instruments that allow it will fade into forgotten dust as a bygone age is swallowed up entirely, along with the framework of financial legacy.

It’s not just about controlling

It is also about the financing of the IMF. What happens when a governing body needs to raise capital quickly? That’s right, he issues trash bonds. Well, what if other products generate bigger returns in a shorter time frame like what happens in the world of Stablecoins and DeFi?

For the United States, this is called the “federal funds rate”. This is the rate at which banks borrow money from each other or the central bank on an overnight basis to meet a reserve requirement (a percentage of the deposits you hold), each night. As you can imagine, the loss of bonds and the loss of another source of income through the fed funds rate is not something that a centralized actor wants.

But that’s not all, folks!

In December 2020, the IMF put a post on his blog which discussed using your browser history to affect your credit score.

The IMF is delighted to tell all of us about the possibility of adding everything we do on the internet to be calculated against our ability to get a credit card. He no longer wants to simply have access to your finances and control that information in a global marketplace. No, it got too boring. Now he wants to control who you are and control every digital action you take.

Can you guess if Bitcoin solves this?

This is a guest article by Shawn Amick. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

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