Post
Topic
Board Economics
Re: Could Bitcoin Smash Socialism in Venezuela?
by
Coyster
on 21/02/2021, 23:13:31 UTC
Venezuela's situation could closely resemble nigeria's. In the future we may see nigeria's central bank roll out its own cryptocurrency identical to venezuela rolling out their ill fated petro years ago.
Imo, this countries are 'firing at the wrong target', both the Nigerian and Venezuelan economy has definitely seen better days, thus I don't see why their governments should stand as an opposition to decentralized cryptocurrencies, Bitcoin acts like a sort of panacea to the problems of quite a lot of citizens from this nations, and the thing is, it could also positively affect the general economic situation, when citizens make 'extra' funds, they could start small-scale businesses which invariably becomes a plus to the nations microeconomics, and also, basically just having more money to spend (which Bitcoin provides) is economically beneficial, and that's the same reason why some countries give out stimulus bonuses.

Having said that, I think it's a really counterproductive decision for a country that's battling with inflation, hyperinflation or a comatose economy like that of Venezuela to work on launching CBDC's, cause it's still going to be controlled by them, and backed by either their constantly devaluing fiat, or whatever resource the country has, that's still already affected by the said inflation. It's a misplaced priority if you ask me, the Nigerian/Venezuelan government should basically just allow Bitcoin thrive in their shores as they seek ways to awaken their near-dead economy.