El Salvador’s Bitcoin policy could lead the change in global monetary system – Simon Dixon

Famous investor Simon Dixon said that if El Salvador’s Bitcoin policy is successful, it could collapse the International Monetary Fund’s (IMF) “fiat-based Ponzi scheme” debt mechanism. Dixon said that financial crises caused countries to go into debt, which in turn turned entire economies into overly leveraged systems.

On the other hand, Bitcoin acts as an independent equity that can generate huge returns. Investing in Bitcoin could provide countries with a way out of the IMF’s leveraged debt cycle.

Dixon said: “Betting a percentage of a country’s future, I believe, is a completely responsible, not irresponsible strategy, and the IMF wants countries to follow irresponsible strategies of fiat-based Ponzi scheme debts.”

El Salvador  said that if it can successfully implement its Bitcoin investment scheme, it could withdraw itself from the alleged Ponzi scheme.

El Salvador's

Bitcoin as equity

Dixon described investing in Bitcoin as a leveraging move from debt to equity. he said:

“[By] equity, I mean, I was deep in dept trying to create a bank, and then Bitcoin treated me well. I became wealthy because of Bitcoin.”

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According to Dixon, growing wealth leads to more spending, which supports Bitcoin’s dominant economy. With this rationale, Dixon announced that Central Bank Digital Currencies (CBDCs) would bring the IMF’s debt-based Ponzi schemes to the digital platform. He called CBDCs “a central bank-issued loan” and a “speculative attack on fractional reserve banking”.

Following El Salvador to get out of IMF’s “Ponzi scheme”

Looking at historical milestones and the current state of the financial system, Dixon said countries can borrow from the US, IMF or China to finance their own countries. Dixon argued that the IMF did not like El Salvador’s legal tender for Bitcoin, as the prospects for building a successful economy around Bitcoin pose a serious threat to the IMF’s current system.

Dixon said: “If [El Salvador’s] succeeds, this is a big problem for the business model of the IMF. They’re not a bailout company, they’re not a mechanism for developing the world.” He continued: “They’re a mechanism for dollarizing the world and implementing a global central bank digital currency on top of their special drawing rights, so they can maintain control of their mechanisms.”

Bitcoin City

El Salvador’s Bitcoin policy

El Salvador became the first country to accept Bitcoin as legal tender in December 2021 and has since accumulated more than 2,300 Bitcoins. The IMF opposed El Salvador’s decision to accept Bitcoin as a legal tender. Regardless, El Salvador is keen on its Bitcoin-based financial system and is confident that prices will rise higher than before. The county also influenced the Central African Republic (CAR) to adopt Bitcoin as a legal tender.

About Hama Amefiz

Amefiz is a professional blockchain, cryptocurrency and tech journalist, regular contributor to newsbsc.com who is writing analysis about the latest developments in the cryptocurrency and blockchain space.

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