The IMF Hates Bitcoin, Why? It Loves Total Control

The International Monetary Fund (IMF), along with a litany of other financial institutions, really doesn’t like Bitcoin. So let’s think, as we always do, about what the IMF is and why it even matters.

What is the IMF?
The IMF and the World Bank are like parallel universe versions of Shaggy and Scooby-Doo. They don’t know what they are doing, but the decisions they make determine the end of the show. The only difference is that no one wants to watch this version of the show because Shaggy and Scooby keep devaluing your currency to nothing.

This article is only about the International Monetary Fund, whose mission is as follows.

“The International Monetary Fund promotes monetary cooperation, provides policy advice and capacity development support to preserve global macroeconomic and financial stability and helps countries build and maintain strong economies.”

-IMF.org

IMF

 

As an oversimplification, let’s imagine that the IMF is dictating a global monetary policy for the short and medium term. It reacts to what is put before it at any given time and “influences” global markets. Obviously, this requires a great deal of control, or centralization, if you will.

So, who constitutes the IMF?

“IMF loans are financed primarily by quota contributions from its members.”

-IMF.org

It’s no secret that a group of rich people influence monetary policy across the globe. It’s easy to find public information. Obviously, these people have good reason to maintain the status quo.

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

Preventing a Fourth Turning
For those unfamiliar, the “fourth turn” is a concept that states that societies have a cyclical progression, usually about 20 years per turn, with the last turn resulting in a crisis that overthrows the old system of power and ushers in a new era.

Bitcoin is often thought of as the crisis moment of the fourth turn, overthrowing the old financial institutions (a summary is available here).

Along this trajectory, the world has been rocked by a pandemic over the past two years that has led to the devaluation of many global currencies, with the US dollar being a very clear example, as outlined in this article by Jerry Goddard. The IMF knows all about this and has made it clear that it means to stay in control.

On July 29, a post was published on the IMF’s blog that included the following passage.

“There is a window of opportunity to maintain control over monetary and financial conditions and to strengthen market integration, financial inclusion, economic efficiency, productivity and financial integrity.”

-IMF Blog

Honestly, it is a bit smug to see how imprudent this statement is. Clearly, through nation-state central banks, the World Bank and other institutions, the IMF’s goal is to maintain control. In classic Bitcoiners parlance: ” Bitcoin solves that problem.”

But seriously, that’s what Bitcoin does.

How does Bitcoin solve this problem?
I won’t rehash the details of what Bitcoin is for you. Let’s focus on the basics.

1. Bitcoin is decentralized. No group of developers, miners, or corporations can band together to manipulate the protocol. If consensus can’t be reached, then to hell with it, it’s not happening. Understandably, the International Monetary Fund (IMF), which solves short- and medium-term economic problems between countries by issuing loans based on its constant involvement in devalued currencies, probably doesn’t want the money supply to be controlled by an invincible algorithm that lets you play the game the way Bitcoin does.

2. Bitcoin has a programmed monetary policy. We know how many bitcoins there are now, we know how many there will be in total, and we know when new bitcoins will be issued. We know it all, and it’s publicly available to anyone who wants to see it. The inability to control the supply or its issuance is a critical issue for any central authority trying to maintain power in a traditional system. They can’t control the protocols or systems of bitcoin, and they can’t control the currency of bitcoin. These would be transparent reasons not to want it to succeed.

The International Monetary Fund Wants to Spark Bitcoin Panic
“Digital currencies must be designed, regulated, and offered in such a way that governments maintain control over monetary policy to stabilize prices, and maintain control over capital flows to stabilize exchange rates.”

-IMF Blog

Read this first part again.” Digital currencies must be designed to be “controlled by governments. the IMF will claim this is to protect consumers. We keep hearing about regulations coming on the dark horizon.

And in discussing digital assets, the IMF made sure to talk about Bitcoin directly later in the post.

“Among the most volatile are crypto assets (like Bitcoin), which are unbacked, subject to the whims of market forces, and barely qualify as currencies.”

-IMF Blog

The only cryptocurrency named is Bitcoin. (I hear you, I know you don’t like it when we refer to Bitcoin as a “cryptocurrency.”) It’s named because it’s frightening. It stands before the IMF as an unstoppable algorithm designed to be a relic of a new era. As an era that has passed is swallowed whole, the financial instruments that devalued and made it possible will fade away, becoming forgotten dust, alongside the financial legacy framework.

It’s not just about control
It is also about the funding of the International Monetary Fund. What happens when a governing body needs to raise money fast? That’s right, it issues junk bonds. So what happens when other products generate greater yields in a shorter period of time, such as what happens in the stablecoin and DeFi worlds?

For the United States, this is known as the “federal funds rate.” This is the rate at which banks borrow money overnight from each other or the central bank each night to meet reserve requirements (the percentage of deposits you hold). As you can imagine, losing bonds and another source of income through the federal funds rate is not what any centralized power wants.

But that’s not all, folks!
In December 2020, the International Monetary Fund put up a post on its blog discussing the use of your browser history to affect your credit score.

“As big tech companies collect data, manage customer relationships through ubiquitous digital platforms (as opposed to a network of physical branches), and become key to better designing and customizing financial services, they will maintain an increasing share of the producer surplus.”

-IMF, “What’s Really New in Fintech”

The IMF is ecstatic to talk to all of us about how everything we do on the Internet will be counted in our ability to get a credit card. It no longer wants to simply access your financial information and control that information in the global marketplace. No, that’s boring. Now, it wants to control who you are and control every digital action you take.

Can you guess if Bitcoin can solve this problem?

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