A recent IMF article was extremely favorable to countries in Latin America and the Caribbean using central bank digital currencies, while discrediting El Salvador’s adoption of Bitcoin.
this postal Countries in Latin America and the Caribbean (LAC) “are making significant progress in introducing central bank digital currencies (CBDC),” the IMF said.
The report states that Brazil, Argentina, Colombia, and Ecuador are four Latin American countries among the top 20 countries for crypto asset adoption in 2022.
However, the IMF post chose to agree with these apparent downsides to potential adoption, citing:
“The adoption of cryptoassets also poses many challenges and risks, especially for fragile Latin American and Caribbean countries with historically unstable macroeconomics, low institutional credibility, high capital flows, corruption and widespread informal sectors.”
On the issue of adoption, the IMF authors noted how the Dominican Republic and Argentina have banned the use of crypto assets, citing concerns about “financial stability, currency and asset substitution, tax evasion, corruption, and money laundering.”
There is no mention that the IMF itself has forced the Central Bank of Argentina to insert a Anti-Encryption Clause A deal was reached on the most recent IMF bailout.
The IMF said it had surveyed government officials in Latin America and the Caribbean, half of whom responded that they were considering both retail and wholesale CBDC options.
“The majority of survey participants see CBDCs as a means to enhance payment systems and broaden access. They see financial inclusion and monetary sovereignty as key factors in favor of retail CBDC issuance, which can facilitate the integration of unbanked individuals and limit the A currency alternative to stablecoins or cryptoassets.”
However, the IMF acknowledged that CBDC adoption has been “slow” for the ECCU and the Bahamas, saying it is for this reason that these countries must promote CBDC adoption and public awareness of it.
The IMF has a strong belief in fiat currencies, especially the U.S. dollar. It spent the last few decades of its existence lending mostly to third world countries, thereby plunging them into even more debt.
To such organizations, cryptoassets are distasteful and should be banned and suppressed at all costs, despite acknowledging the clear advantages the crypto industry brings to finance.
The potential success of El Salvador’s bitcoin adoption strategy is sure to worry IMF officials.
If the IMF succeeds in urging some countries in Latin America and the Caribbean to adopt CBDCs, it can be expected that the citizens of these countries will be completely controlled and enslaved.
Hopefully citizens will be educated to reject CBDCs, as is the case in Nigeria where only 0.5% of the population use eNaira as a transaction option even in the face of cash shortages.
Disclaimer: This article is for informational purposes only. It does not provide or be intended to be used as legal, tax, investment, financial or other advice.