National Currency Magic Curse: A Digital Currency Discovery Tour in Latin America

Geopolitics is always full of games and mysteries.

In 1492, the Columbus fleet discovered Cuba;

In 1500, the Portuguese discovered Brazil;

Now, the whole film, which is called "subcontinent" by Western public opinion, is discovering digital currency at the same time.

They are so collectively fascinated by the blockchain and digital currency that a new geopolitical appeal has emerged in silence.

Americans refer to Latin America as the “back garden.” These countries, which have little sense of existence in today’s mainstream political arena, are just a few holiday paradise for the middle class in North America.

They are portrayed as: blue to transparent sea water, warm winter seasons, old-fashioned girls, and low prices.

However, "too far from God, too close to the United States" is the voice of these Latin countries.

In the past century, they have not found a way to escape this cycle – until the digital currency and blockchain bring new hope.

"Going to dollarization", and even political complete independence, the humans in the northern hemisphere may be difficult to understand. Here, the digital currency has become the most flaming flame of this "de-American revolution."

Mankind will never stop competing and redistributing, so this land has believed in Che Guevara and was once the world of Castro.

Nowadays, digital currency, this carries a huge hope, and often the elusive existence, what will it bring to them?

In the attempt to explore them, is there a real and feasible path?

1 currency! Send money! Send money!

 

According to field investigations in the 45th district, Cuba’s network costs are still very expensive. 100 yuan is only enough for three hours. As a tourist, if you want to buy an internet card, you need to queue up for a whole day. You can only wait for second-hand dealers in the square. .

In addition to communication tools like WhatsApp, locals can't even use Airbnb properly, and all homestay reservations only support mail operations.

In such a country that has lived in the shadow of US sanctions for a long time, it is difficult for anyone to link its Internet infrastructure to the fashionable bitcoin trading platform.

However, this world sugar can has the ambition to break through the clouds.

“We are considering the application of cryptocurrencies in national and international trade relations. We must see how this type of measures can be incorporated so that we can continue to find solutions to problems.” Cuban Minister of Economy and Planning, Alejandro Roy Gill said.

Just in early July, the Cuban government expressed its plan to establish its own digital currency and publicly stated that the initiative was designed to evade economic sanctions imposed by the United States.

On a television show, Cuban State Council Chairman Miguel Diaz Carnell said that plans to use digital currency would raise enough funds to support 25% of the population's needs and help pay for the reforms.

To be financed by ICO, in this country where 60 people buy Bitcoin through OTC every day, it is considered redemption.

The program also received remote support from American computer programmers, businessmen and politician John McAfee.

"Cuba plans to use cryptocurrency to get rid of the 63-year economic pressure imposed by the US government on 14 million Cubans. Ultimately, this will become a large-scale real world using cryptocurrencies. If Cuba needs my help, I Will help," he said.

This humane rhetoric is enough to be moving, but the two countries that are not far apart provide an example of failure, and people have to re-examine the true feasibility of this country's legal currency path.

2 reverse teaching materials

More than half a year ago, another Latin American country was not far from Peru.

Peru’s ambitions for digital currency are surprising, also because of its intricate relationship with the United States.

An example can illustrate how Peru’s internal affairs and diplomacy have been manipulated by the United States for a long time.

As early as before World War II, the United States came forward to mediate Peru and Ecuador's territorial and oil disputes over the Amazon, but at the same time the United States also charged extremely expensive adjustment fees.

Although the territory ceded by Ecuador belongs to Peru, the mining rights of the oil field belong to the American Petroleum Monopoly Organization (OXY).

Peru, which has been using resources in exchange for US asylum, has begun to reduce its dependence on the dollar and regain its financial sovereignty in the past two years.

The path it chooses is also: the currency.

In November last year, the Peruvian government cooperated with Bits2U, a private encryption cloud mining company in China. Like Cuban currency, it also created the digital currency PeruCoin based on the Ethereum ERC20 agreement. Obviously, it also wanted to bypass the US dollar settlement when doing world business.

However, this nationalist ambition seems more like a thick layer of flour on the outer shell of the cut amaranth.

First, cryptocurrency is essentially a peer-to-peer currency that the government cannot intervene, but each Perucoin has a fixed value of $10. How to maintain this fixed value is full of doubts.

The Bits2U company also clearly stated on its website: "We will provide an online platform that will double your investment in just a few months."

It is hard to believe that this will be a serious national endorsement tone.

In fact, on the official website, the funds currently raised by ICO are still very limited:

This national currency error was also verified in Venezuela. In less than half a year, the oil currency has risen tenfold, and the national credit has disappeared. The digital currency has become another fig leaf for totalitarianism.

3 currency radical strategy

In addition to the US factor, another reason for Latin American countries to toss the monetary system is the extremely unstable exchange rate. To this end, many countries are eager to achieve success and have made some radical monetary policies.

Earlier, some Latin American countries eager to get rid of the dollar’s ​​influence, some began to explore another possibility. A news of #四国计划统一币# triggered a hot discussion among netizens.

The four countries are: Argentina, Brazil, Paraguay, Uruguay. According to overseas sources, various unified currencies may also absorb Libra's experience.

In fact, Brazil and Argentina, the two leading countries, are among the most sought after digital currencies in Latin America. Brazil’s cryptocurrency transactions increased by 450% in political turmoil. In Argentina, facing the inflation crisis, the capital city of Buenos Aires was listed as one of the 10 most affected cities in terms of Bitcoin.

However, the imagination of this Latin American version of the "Euro" is probably lower than that of a single country.

As early as 20 years ago, these countries discussed the issue of monetary integration: in 1998, the then Argentine President Carlos Saúl Menem suggested that the Southern Common Market should use a common currency, but in the end it was for a variety of reasons.

Take the euro zone, the only currency union in the world today, for example, from the idea of ​​1969 to the official release in 1999, for a total of 30 years.

What's more, the economic differences between the four South American countries are huge, and the economic situation is extremely unstable, especially Argentina and Brazil that initiated this initiative.

Since April last year, due to factors such as the Fed’s interest rate hike, the depreciation of the Argentine peso has exceeded 50%. The domestic economic situation has deteriorated drastically and has to rely on the IMF’s assistance of more than US$50 billion.

The Brazilian currency “Real” also experienced a sharp depreciation in 2018, resulting in a decrease in Brazilian GDP (in US dollars) of more than 180 billion U.S. dollars, a drop of 8.9%.

The issuance of digital currency by the state is also one of the monetary radical strategies made in the financial quagmire.

4 other paths

 

At least for now, it seems a bit naive to want to rely directly on the national currency to get rid of the US influence. Therefore, there are some other blockchain solutions on the Latin American land, which is milder than that.

“We will focus on three technologies in the first phase: artificial intelligence, the Internet of Things and the blockchain, which we believe is a great opportunity to build public-private partnerships,” said Colombian President Marquez.

Recently, the Colombian government reiterated its efforts to promote the use of blockchain technology in digital government systems.

In May of this year, the fourth industrial revolution center was unveiled. The centre provides a space for technological innovation for the public and private sectors, including the blockchain.

Colombia is not only one of the leaders in Latin America in terms of blockchain development and encryption adoption, but the President has repeatedly emphasized his positive views on technology.

Recently, the president also traveled to Silicon Valley to seek investment in blockchain entrepreneurship in China.

"I hope that this government will become a financial technology government, and we will also bring the best blockchain protection mechanism. We encourage the public to use them," he said.

In Chile, the blockchain was also recognized as the “fourth industrial revolution”. The Ministry of Economic Affairs is working to promote blockchain technology. According to Diario Bitcoin, the agency is currently coordinating six blockchain worksheets to explore use cases in areas such as digital identities, financial services, energy, and health.

Of course, there are also countries that hold strong opposition to digital currencies, such as Bolivia.

In 2014, Bolivia became the first Latin American country to ban cryptocurrencies. Since then, the country’s central bank has reiterated skepticism on various occasions. In addition, it warned that the disadvantage of digital currency is “the payment mechanism for illegal and fraudulent acts of drug traffickers and hackers”.

Currently, transactions in Bolivia with cryptocurrency or any operations related to it are illegal.

For the plight of Latin American internal affairs, the blockchain is not capable of turning the tide. Any attempt to exaggerate a technical function is equivalent to killing.

 

Source: District 45