More and more cities and countries will try to transcend this outdated financial system
I am still waiting for a chance to develop a local currency framework for cities, regions and communities. Look at these cases — people want and need such instruments, but do not yet fully understand how to use them effectively.
1. Bitcoin is being introduced as a local currency in a dedicated community.
This small surf town of El Zonte in El Salvador has turned into the world’s largest Bitcoin experiment. In 2019, a small team of Salvadoran volunteers and an American expat began converting the local economy to Bitcoin. Workers now receive their wages and pay bills in Bitcoin, tourists can buy Pupusas using a dedicated Bitcoin payment app, and community projects are funded with Bitcoin donations.
In fact, the “Bitcoinization” of El Salvador began a long time ago. President Bukele got his start in cryptocurrency even before winning the 2019 elections. He even hinted at his desire to host it in 2017, when he was mayor of San Salvador, tweeting, “We will be using Bitcoin.”
In fact, bitcoin is being introduced in a single community as a local currency.
The strategy used for this case and starting conditions I described several years ago:
- Large user base
- Diversification of available goods and services
- Limited territory
- Advocating agents and consultants
All of these factors are present in the mentioned project, according to statements of the residents (in the video). https://youtu.be/-JKp6FWhctM
Having overcome distrust and skepticism, local residents are mastering this unusual means of payment quite successfully and already having the output. It is almost the same as good as of a real local currency — the economics is recovering according to the locals’ talk. The problem is that bitcoins are global, and according to local residents, they began accumulating it. Preventing it, the result would have been orders of magnitude higher!
This example clearly shows that local currencies are viable and solve many local problems. But their implementation is hampered — with skepticism and a lack of positive examples like this.
2. The feeling that they need local currency emerging in US cities as well. However, this is funny how they trying to make it (not having an understanding how it supposed to work): https://www.newsweek.com/miami-launch-cryptocurrency-fund-city-initiatives-miami-coin-1614323
3. Sometimes I am terrified of how illiterate even some top financial persons on how the money and crypto currency works. https://www.handelszeitung.ch/unternehmen/nationalbank-blockchain-ist-ungeeignet-fur-digitales-zentralbankengeld
According to the chief economist of the Swiss National Bank, Carlos Lenz, the decentralized nature of blockchain is ill-suited for state-controlled digital currencies. Lenz stressed that blockchain is not very efficient when it comes to centralized digital currencies. When designing state cryptocurrencies, various technology options are possible, including platforms using blockchain.
“When creating a digital franc, you can create a system with direct accounts in the National Bank. I will not say that this is the best option, but it is the simplest one. Or use blockchain, but I don’t think a decentralized solution would be ideal”, - said the economist.
- the “economist” does not even know that blockchain cannot be “centralized or decentralized”. This concept only applies to consensus algorithms.
Blockchain is a technology for cryptographically protecting a list of transactions (Ledger).
This is not surprising, because the world is ruled by old-format, illiterate marginals who do not want to change anything and are persistently leading the planet to ecological and social collapse.
Look what they’ve done with the global financial system.
I’m predicting that more and more cities and countries will try to transcend this outdated financial system to overcome it’s disadvantages and consequences and now in search of a solution. I can see these signs everywhere…
