In the face of economic turmoil and instability, bitcoin really is the best medicine?
Economic stability has long been the target of Central American countries. The Latin American and Caribbean region for decades has been suffering from economic instability problems. Rampant inflation and currency depreciation of the assets and make the economic situation in these countries becomes unstable, often become a haven for criminal activity. Banks and government corruption is often referred to as the main cause of these economic disasters, in particular to the center of monetary control. Aragon founder and project director Luis Cuende says it’s time for encryption currency plays an important role in the region’s economic renaissance, entered the new era of economic stability. But Cuende is not the only think so.
In bitcoin Nakamoto’s eyes before the people of Latin America have been subjected to sharp fluctuations in inflation and the extreme value of assets and money. A regional currency, such as Venezuela’s Bolivar, with unpredictable speed experienced severe inflation, leading to the widespread poverty. The economic problems in Latin America, Cuende explained that “these countries have suffered decades of economic difficulties, it is easy to relate to encryption currency in there, the government should not determine people’s value of money.”
According to the design, can withstand the economic turmoil cryptocurrencies. This will lead to a more stable store of value, and is not affected by the government or the Bank of central authority, and can protect the integrity of the transaction and savings. Latin American governments for decades has been to ignore their citizen; encryption currency brings a chance for people to fight back.
For the use of encryption currency, said Luis:
“We really don’t need a bank or government permission to promote this initiative, so will happen is that people will be more and more use of encryption currency, they will self organize, and perhaps even self governance. I think this is a system.”
If you consider the legal tender, you will see the crazy changes its value, because the government can print money, but on the contrary encryption, encryption currency is so interesting, because the overall value will rise, there is no other possibility.
Bitcoin global support
Recently, the United Nations released a report detailing the possibility of the use of encryption currency as a means to eliminate the risk of the financial system. Investigation and Research Report, the latest block chain. It is the United Nations and called for all of these, is committed to providing international assistance and improve the global economy.
The Caribbean report attributed to three main options:
The bitcoin or a completely encrypted private currency of similar commodities.
Permission to use the block chain run by an agency of the alliance.
The central bank issued digital currency mechanism (CBDCs).
Although the use of a block chain or license issued by the central bank digital currency is feasible, but Luis points discussed these options may lose money encryption, so for Latin America may be the solution of low efficiency. “The most important thing is, especially in Latin America, responsibility system… If they use the actual block chain, then I will be very love. This responsibility is needed to combat corruption in Latin america.”
The global economic stability and the blockchain future
With the United Nations and the European Union joined is actively pursuing block chain technology, governments and organizations in the list, the possibility of encryption currency global solutions are based on increasing.
With the total market value of digital currency over $90 billion, it is not surprising that many people’s eyes are on this emerging technology. Dubai, Zimbabwe, Norway, Delaware; with more and more governments to block chain, Latin American countries embrace the blockchain is only a matter of time.
However, as Luis said, if the government and banks do not implement these changes, so people can do their own.
“The government and banks have many rights, they pay attention to what is happening… We are seeing a crypto currency bank to enter the industry, I think this trend will only accelerate.”