Re:Iran authorizes use of cryptocurrency for imports payment
by csomar on Wednesday April 28, 2021 @09:58AM
(#26969430)
Bitcoin and permission-less currencies are bad news for countries like Russia and Iran. These countries can already transact through designated individuals and off-shore companies. Crypto still need an off-on ramp to traditional finance.
On the other hand, these nation states would use cryto if they were technical and knowledgeable enough of the intricacies of such market. Venezuela already launched its own crypto-currency (the Petrodollar) which was a complete flop. You'd think that a nation state with all its resources, people, sovereignty and army would be able to make a cryptocurrency (probably an Ethereum fork) work. Well, it's simple: They can't.
Most countries today rely on a system they barely understand how it works. They collect taxes, print money and try to export/import stuff. The whole system is glued together by a nation that somehow appeared before, during or shortly after the second world war. Their answer to instability in markets is almost always restrictions (either in money transfers, or blocking imports, or arbitrarily confiscating wealth).
These systems have barely evolved especially in less developed countries, and even in first class countries are still quite archaic. It doesn't help that these system do not have knowledgeable people about these technologies who could help shape policy, recognize trends or act.
The only reason these countries still have semi-functioning finances is that a large portion of the population never heard, or have the technical capabilities to deal with crypto. The newer generation is going to force a re-draw of nation states and probably bankrupt some governments in the process (it's already starting to happen).
On the other hand, these nation states would use cryto if they were technical and knowledgeable enough of the intricacies of such market. Venezuela already launched its own crypto-currency (the Petrodollar) which was a complete flop. You'd think that a nation state with all its resources, people, sovereignty and army would be able to make a cryptocurrency (probably an Ethereum fork) work. Well, it's simple: They can't.
Most countries today rely on a system they barely understand how it works. They collect taxes, print money and try to export/import stuff. The whole system is glued together by a nation that somehow appeared before, during or shortly after the second world war. Their answer to instability in markets is almost always restrictions (either in money transfers, or blocking imports, or arbitrarily confiscating wealth).
These systems have barely evolved especially in less developed countries, and even in first class countries are still quite archaic. It doesn't help that these system do not have knowledgeable people about these technologies who could help shape policy, recognize trends or act.
The only reason these countries still have semi-functioning finances is that a large portion of the population never heard, or have the technical capabilities to deal with crypto. The newer generation is going to force a re-draw of nation states and probably bankrupt some governments in the process (it's already starting to happen).