By Matthew Russell Lee, Patreon Video Podcast
BBC - Guardian UK - Honduras - ESPN
SDNY COURTHOUSE, Nov 22 – When the International Monetary Fund held its biweekly embargoed press briefing on September 16, Inner City Press asked about crypto-currency legislation in Ukraine and again El Salvador, about the coup in Guinea and the role of the Venezuela talks in Mexico on release of the SDRs. IMF video and transcript forthcoming. Spokesperson Gerry Rice responded on each. Podcast here. Short video of Qs on Twitter here. Now longer YouTube of IMF video here.
Full transcript here.
Inner City Press asked, " what is the IMF's view of Ukraine's move to regulate crypto-currency? Also, the new legislation proposed in Panama, and the implementation of the El Salvador Bitcoin as legal tender bill?" When called on, Inner City Press added that Ukraine would use nuclear reactors' output for mining.
Rice cited an upcoming virtual mission to Ukraine later this month, and said that on El Salvador, the talks are under Article 4, not for a program, as least at this point.
On November 22, the IMF issued its Article IV report on El Salvador, including that "[e]fforts to improve financial inclusion and raise growth are welcome, but risks arising from Bitcoin as a legal tender, the new payments ecosystem and trading in Bitcoin should be addressed. Crypto-technologies and digital payment systems like Chivo have the potential to make payments more efficient, thereby enhancing financial inclusion and supporting growth. Given Bitcoin’s high price volatility, its use as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, Bitcoin should not be used as a legal tender. Staff recommends narrowing the scope of the Bitcoin law and urges strengthening the regulation and supervision of the new payment ecosystem. Like for other e-wallets, Chivo should be required to fully safeguard customers' funds, both in U.S. dollars and Bitcoin, by segregating and ring-fencing reserve assets. Stronger regulation and oversight of the new payment ecosystem should be immediately implemented for consumer protection, anti-money laundering and counter financing of terrorism (AML/CFT), and risk management. Banking regulation should incorporate prudential safeguards such as conservative capital and liquidity requirements related to Bitcoin exposure. Measures to limit fiscal contingent liabilities, such as winding down the trust fund or withdrawing public subsidies to Chivo, should also be promptly considered. Recently announced plans to use the proceeds of new sovereign bond issuances to invest in Bitcoin, and the implications of trading more broadly in Bitcoin, will require a very careful analysis of implications for, and potential risks to, financial stability."
Back on January 8 Inner City Press asked the IMF's Helge Berger, Mission Chief, about China's so-called Belt and Road Initiative: "Your Article IV report cites China's "overseas lending projects" amid "rising geopolitical tensions and economic and trade frictions." How does the IMF think that rising debt levels among African countries, and increased skepticism about the "Belt and Road" will impact or be addressed going forward? -Matthew Russell Lee, Inner City Press. Video here.
and see, now, the book "Belt and Roadkill," here.
(An aside: Inner City Press has reported on the CEFC China Energy Fund Committee's activities in Chad and Uganda and in the UN, on which the UN is UNresponsive.)
Other questions included China's digital currency (Inner City Press also reports on crypto-currency cases in the U.S. District Court for the Southern District of New York and elsewhere). Berger said when used overseas an issue is that residents could start using another country's currency, if it is easier.
We'll have more on this.
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