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Adopting cryptocurrencies as legal tender is a bad idea and these are the reasons part one by Karupanocitizen

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On June 9 of this year, the Central American nation of El Salvador became the first country to adopt a cryptocurrency, in this case, bitcoin, as legal tender, which implies that, by law, it must be accepted as a Payment mechanism in any operation or financial exchange that occurs within the Salvadoran market, coexisting with the other legal tender already exists: the US dollar (keep this in mind).

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The news spread like wildfire and many analysts and scholars have rushed to carry out rigorous analyzes on the feasibility or not of the measure one of those analyzes served as inspiration for the realization of this publication, it was published on 28 July this year by the Russian news portal actuality.rt.com under the title: "Adopting cryptocurrencies as legal tender is a bad idea and these are the reasons, according to the IMF". (I recommend reading the original post to form your own opinion)

Upsss I think I forgot in my title to write what followed after the comma 😂!

It is no coincidence that I have decided to place the same title of the publication that originated in my post, I wanted you to observe the negative predisposition as the news is treated concerning crypto assets, there are many governments, institutions, even "financial analysts ”Who bet that cryptocurrencies end up being a simple fad and end up being a failure… it's simple, there is a lot of money and a lot of power at stake.

I wonder, wouldn't it have been a bit more balanced if the title of the article on the RT portal would have been something like an Analysis of the advantages and disadvantages of adopting cryptocurrencies as legal tender by the IMF? ... I don't know, I mean. 🤨

Introduction

In this publication, as well as in the following ones, we will be analyzing every one of the points analyzed by the IMF about the adoption of cryptocurrencies as legal tender. I want to tell you that I do not intend to make a blind defense of the use of cryptocurrencies, as the currency of legal use, in the financial system of any country, on the contrary, I will try to be as fair and balanced as possible in the arguments that I use.

A bit of context

The IMF is a 184-nation organization that works to promote global monetary cooperation, ensure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty. (IMF Information Guide)

From the above, it can be inferred that it is a multinational institution, which seeks "financial stability", favoring international trade, promoting economic growth and there at the end, as if someone had agreed at the last minute ... to reduce poverty (although we don't know from whom).

This institution has received a lot of criticism in the past from countries that received aid or financing from this entity, the reason? Many times it seems that this entity, instead of worrying about the well-being of the people, focuses more on satisfying the requirements of the people. financial groups behind this entity. In case you don't know, the IMF is not a bank it acts as an intermediary between financial institutions and the countries that receive aid.

https://sdk.bitmoji.com/render/panel/b7474bed-4713-45fd-aab1-6b684082c82e-cc79709b-7f50-47f1-b813-be84b4a51973-v1.png?transparent=1&palette=1

Is this your concern that the countries that receive credits may pay in some way?

Before entering the matter, I wanted to make this subsection since it should not be forgotten that those who carry out the analysis on the viability of using cryptocurrencies as currencies for legal use are the same, who facilitate and promote the adoption of "strong currencies" as a mechanism for "Clean up" world economies, including of course ... the US dollar.

Do you remember what I mentioned to you some paragraphs before you had in mind? (You can go up to read again xD), What do you think the IMF is interested in regarding the dollar having competition in El Salvador?🤔

Significant investment ...

According to the report issued by the IMF under the signature of Tobías Adrián and Rhoda Weeks-Brown, who are directors and directors of different departments of the entity, the adoption of cryptocurrencies as currencies for legal use:

"It requires significant investment, as well as difficult political decisions, such as clarifying the role of the public and private sectors in the provision and regulation of digital forms of money."

Here it is important to stop for a moment to analyze: significant investment for whom? What should be invested in? In exchanging dollars for bitcoins? In payment processing systems? Because as far as I know the decentralized nature of BTC is what allows anyone with a Tablet, PC, smart mobile, and internet connection to carry out commercial exchanges without the need to invest in the design of any other payment processing system.

Regarding the **"difficult political decisions"*, I think it is a euphemism to say: "say goodbye to the manipulation and control of the currency by the government to generate inorganic money to finance proselytizing social programs, or to cover the fiscal gap."

Finally, when they refer to: **"clarifying the role of the public and private sectors in the provision and regulation of digital forms of money"*, there is one of the main drawbacks that the IMF observes for the adoption of cryptocurrencies, they fear that the two main clients of the financial sector: government and private companies begin to lose interest in the merchandise that until now inclined the factors of power in the world: money, or fiat currencies.

What is your fear IMF if you are supposed to advocate for the fight against poverty globally?🙄

I'm sure that like me they want to continue reading the analysis of the reasons why, according to the IMF, cryptos are "bad" as legal tender currencies, but ... little by little so as not to saturate them, in the next articles we will continue to analyze this together. For now, tell me: do you think the decision of the government of El Salvador was correct? What is your opinion about the IMF? Do you consider that the multinational entity fears the loss of power of the traditional financial sectors in the world?

*We keep reading!

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