Jedi on Nostr: El Salvador: Leaping forward or lurching backwards? President Nayib Bukele must ...
El Salvador: Leaping forward or lurching backwards?
President Nayib Bukele must decide whether to accept the IMF’s strict fiscal austerity and constraints on monetary policy or take a leap toward a sovereign future.
El Salvador should turn its back on the IMF’s traditional lending structure and reach out to Tether.
A privately driven solution preserves national sovereignty and opens the door to a unique alliance poised to build the future of finance.
Working with Tether frees ES from the strings attached to IMF loans. This benefits both the country and Tether. My proposal would see El Salvador issuing bonds equal to the loan amount, backed by the nation’s current Bitcoin reserves. To strengthen collateral over time, Bukele would pledge to continue to purchase at least one bitcoin per day during the term of the bonds. As Bitcoin rises in USD terms, the loan falls in risk.
The bonds become a USD denominated asset that Tether can hold in its own reserves. Tether can issue USDT against these bonds. Both sides gain an incentive to ensure the arrangement remains stable and transparent.
For El Salvador, the appeal is clear. Free from IMF-imposed cutbacks and conditions, it protects its right to choose how it invests and secures the sovereignty it has always sought in its monetary policy. Tether gains a major foothold in a country that has declared Bitcoin legal tender, further intertwining its USDT with a national economy pushing the boundaries of Bitcoin adoption.
There are immediate benefits for ordinary Salvadorans as well. By working with Tether, the government can improve on the infrastructure to handle remittances, tourism, and everyday transactions using both Bitcoin and USDT. The message of sovereign protection of the Bitcoin economy will also help attract tech-savvy global investors.
Over the long term, this arrangement paves the way for a new financial model. This bond-based structure grants Tether a stake in a nation that is truly embracing a Bitcoin future.
It is rare to see a private institution effectively supplant the role of the IMF, but that is exactly the potential we are dealing with here. If done with the right safeguards, this could spark a global shift in how countries with Bitcoin reserves approach debt financing, especially those seeking to maintain autonomy in their monetary policy.
Imagine a world where a country’s financial stability is reinforced not by rigid, old-school conditions, but by a dynamic partnership that marries the dollar’s stability with Bitcoin’s innovation. That vision can become a reality in El Salvador.
By walking away from the IMF and instead striking a deal with Tether, El Salvador stands to defend its sovereignty, inspire digital transformation, and strengthen its reputation as the vanguard of a new global economy built on both Bitcoin and stablecoins.
And MAKE FLAGS LONGER!
President Nayib Bukele must decide whether to accept the IMF’s strict fiscal austerity and constraints on monetary policy or take a leap toward a sovereign future.
El Salvador should turn its back on the IMF’s traditional lending structure and reach out to Tether.
A privately driven solution preserves national sovereignty and opens the door to a unique alliance poised to build the future of finance.
Working with Tether frees ES from the strings attached to IMF loans. This benefits both the country and Tether. My proposal would see El Salvador issuing bonds equal to the loan amount, backed by the nation’s current Bitcoin reserves. To strengthen collateral over time, Bukele would pledge to continue to purchase at least one bitcoin per day during the term of the bonds. As Bitcoin rises in USD terms, the loan falls in risk.
The bonds become a USD denominated asset that Tether can hold in its own reserves. Tether can issue USDT against these bonds. Both sides gain an incentive to ensure the arrangement remains stable and transparent.
For El Salvador, the appeal is clear. Free from IMF-imposed cutbacks and conditions, it protects its right to choose how it invests and secures the sovereignty it has always sought in its monetary policy. Tether gains a major foothold in a country that has declared Bitcoin legal tender, further intertwining its USDT with a national economy pushing the boundaries of Bitcoin adoption.
There are immediate benefits for ordinary Salvadorans as well. By working with Tether, the government can improve on the infrastructure to handle remittances, tourism, and everyday transactions using both Bitcoin and USDT. The message of sovereign protection of the Bitcoin economy will also help attract tech-savvy global investors.
Over the long term, this arrangement paves the way for a new financial model. This bond-based structure grants Tether a stake in a nation that is truly embracing a Bitcoin future.
It is rare to see a private institution effectively supplant the role of the IMF, but that is exactly the potential we are dealing with here. If done with the right safeguards, this could spark a global shift in how countries with Bitcoin reserves approach debt financing, especially those seeking to maintain autonomy in their monetary policy.
Imagine a world where a country’s financial stability is reinforced not by rigid, old-school conditions, but by a dynamic partnership that marries the dollar’s stability with Bitcoin’s innovation. That vision can become a reality in El Salvador.
By walking away from the IMF and instead striking a deal with Tether, El Salvador stands to defend its sovereignty, inspire digital transformation, and strengthen its reputation as the vanguard of a new global economy built on both Bitcoin and stablecoins.
And MAKE FLAGS LONGER!