The International Monetary Fund (IMF), along with a string of other financial institutions, does not really like bitcoin. So, let’s do the normal thing by thinking about what the IMF is and why it’s important.
What is IMF?
The IMF and the World Bank are like parallel universe versions of Shaggy and Scooby-Doo. They have no idea what they are doing, and yet what they decide determines how the show ends. The only difference is that no one wants to see this version of the show, because Shaggy and Scoob are throwing your coin into oblivion.
The only way to stick to the IMF for this article is to:
For the sake of simplification, let’s just imagine the IMF as a short-term and medium-term global monetary policy guideline. It reacts to what is in front of it at any given time and “influences” the world market. This, obviously, requires a lot of control or concentration if you will.
So, who created the IMF?
It is no secret that a bunch of rich people influence the monetary policy of the whole world. This is universal information that is easy to find. Obviously, there are good reasons to keep these guys Status.
So, as I said, the IMF does not like bitcoin. But why?
Fourth turn resistance
For those unfamiliar, the “fourth turning” is an idea that says that society has a cyclical progression, usually every turn in 20 years or more, the end of which turns into a crisis that breaks down and initiates old systems of power. A new era.
Bitcoin is often seen as the crisis moment to take the fourth turn over the old financial institutions (here is a summary).
Following that track, in the last two years, the world has been shaken by an epidemic that has led to the depreciation of many global currencies, the US dollar being a very clear one, as described in this article by Jerry Goddard. The IMF knows all this and has made it clear that this means maintaining control.
On July 29, an article was posted on the IMF blog, with the following quotes:
How irrational this statement is is a kind of honesty. Clearly, the goal of the IMF is to maintain control in the state, through the central bank, the World Bank and other institutions. In the classic Bitcoin phrase: “Bitcoin fixes it.”
But seriously, Bitcoin was created for this.
How does Bitcoin fix this?
I will leave the details of what bitcoin is to everyone. Let’s stick to the basics:
1. Bitcoin is decentralized. There is no team of developers, miners or businesses that can band together to manipulate the protocol. If the consensus is not met, hell with it, it’s not happening. Understandably, the IMF, which issues short-term and medium-term economic problems between countries that issue loans based on the currency that has the hand of continuous downturn, probably does not want the money supply to be controlled by an invincible algorithm that helps you. Play the game the way Bitcoin wants to play.
2. Bitcoin has a programmatic monetary policy. We know how many bitcoins exist now, we know how many will exist in total and we know when new bitcoins will be issued. We know all this, and anyone who wants to see it is publicly available. The inability to control supply or issue is an important concern for any central authority that seeks to maintain power in the inheritance system. They cannot control Bitcoin protocols or systems and they cannot control Bitcoin currency. This will be a clear reason not to want to succeed.
The IMF wants to start a bitcoin panic
Read the first part again: “Digital Money Must Be Designed” For government control. The IMF will claim that it is for consumer protection. We constantly hear about impending regulation on the dark horizon.
And when discussing digital resources, the IMF confirmed to speak directly on Bitcoin later in the post:
The only cryptocurrency was called Bitcoin. (I’m listening to you Maxis, I know you don’t like to call Bitcoin “crypto”.) It was named because it’s scary. It stands in front of the IMF as an irresistible algorithm designed as a remnant of a new era. The decay and the financial materials that enable it will fade into oblivion since a past age has been completely swallowed up, along with the financial inheritance structure.
It’s not just about control
It’s also about IMF funding. What if a governing body needs to raise capital quickly? That’s right, it’s a garbage bond. Well, what if other products have big yields in a short period of time, like what is happening in the world of Stablecoin and Defy?
For the United States, this is referred to as the “federal fund rate.” This is the rate at which banks borrow money from each other or from the central bank overnight as a reserve requirement (a percentage of the deposits you hold), per night. As you can imagine, the loss of bonds and the loss of other revenue streams through the federal funds rate is not something that any centralized player wants.
But that’s not all, people!
In December 2020, the IMF posted a post on its blog discussing using your browser history to influence your credit score.
The IMF is happy to talk to all of us about the opportunity to add what we do on the Internet to count on our credit card power. It doesn’t just want to control your money access and that information in the global market. No, it was very annoying. Now, it wants to control who you are and control every digital action you make.
Can you guess if Bitcoin fixes it?
This is a guest post from Shawn Amik. The opinions expressed are not entirely their own and do not necessarily reflect those of BTC Inc. Bitcoin Magazine.