once upon a time there was a geopolitical concern called crypto

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Dollar race: the evolution

In order to understand why de-dollarization occurs, it is necessary to appreciate the purchasing power value of $ 100 over the years. Although it was agreed that the dollar would be the universal currency, most other countries raised eyebrows on how it gives the United States so much power. Even more so when Nixon cut the link between gold and the dollar in the 1970s – currencies and exchange rates had to be decided by the markets, but for some reason governments continued to interfere with value by the ‘impression

What has been seen cannot be invisible: notice problems

Fast forward to the present day and few people know that our money in general is not backed by gold. Even though the reserve requirement was established after the 2008 financial crisis, this decree was bypassed by the current pandemic in 2020, allowing banks to not have all the required cash in reserve.

Simply put, the money on your online bank statement might not really be there.

There is a saying in French which says that some people only see up to their noses and this has been the case for us privileged in the USA, in Europe and even in some Asian countries. The reason is that our financial system seems ok. We don’t look elsewhere even with taxes and bank charges. Right now we say to ourselves that we can afford our daily life and that doesn’t seem to penalize us.

However, the COVID-19 health crisis has shown much more than our government’s differences, it has shown that the gap between rich and poor keeps widening.

It was always in our heads that why do I have to pay so many bank charges and send money to my family abroad? I personally remembered that the delivery fee should be factored into my budget as it could go up to 25% of the amount I sent.

The lockdowns allowed people to pause and start thinking and realizing that our financial system is slightly corrupt, even in Europe or the United States. The financial system is centralized so power is given to institutions. They can decide whether or not you can send money and how much you will need to pay.

What about poorer countries that don’t have access to bank accounts or even have to travel 3 hours to the nearest town to withdraw money. A lot of money is lost in this process and in 2017 it was found that millions upon millions of dollars were spent on remittances – $ 466 billion to be exact. It is clear that we are not in control of our finances as much as we think

The fact that trade is based on the US dollar gives the United States this huge and exorbitant privilege (Valérie Giscard d’Estaing) to drop import taxes. To put this in perspective, France imported for an amount of 46.85 billion and this only in April (2021), imports are vital for countries and this is what gives the United States and its dollar a huge advantage. The dollar enjoys its privilege and although most countries were not sure it was accepted but this is where it went too far when the petrodollar was named.

The original goal in tying the US dollar to oil was to bring the US dollar back to the United States, but what happened was those dollars were sent back – into financial exiles. The missing dollars and the creation of a new currency (euro) put pressure on this dollar and, coincidentally, the war in Iraq began – one of the major suppliers of oil. Moreover, according to the petrodollar, oil countries should be rich but they are not – Nigeria and Venezuela are oil countries but still suffer internally perpetuated by the petrodollar.

Crypto Brings Power: Publishing Solutions

No government is perfect, to be sure, but solutions can be worked out and usually come from the people. This is why in 2009, somewhere in the world, an individual or a group of individuals called Satoshi created the first cryptocurrency: Bitcoin.

The main difference between all other crypto assets and Bitcoin is decentralization and true scarcity. The blockchain technology supporting Bitcoin is peer-to-peer. It is the individuals of this network who validate the transactions and allow the maintenance of the blockchain. No intermediary is necessary. Anyone can send cryptocurrency anywhere in the world, whether you send a few dollars to millions, it will be processed the same and at the same speed. There is no privilege or priority pass.

This technology operated on a low profile until 2012 and saw a boom around 2015/16. Blockchain via Bitcoin Can Save Savings is an understatement and El Salvador is the example Bitcoin Beach is a company based in El Zonte that has succeeded in creating a parallel economy based on Bitcoin and allowed its people to keep their savings but also to earn money on top of it. A few days ago, the President of El Salvador announced that for each new wallet created, $ 30 would be offered to the owner.

A similar initiative can be found in Brazil with Moeda, a company that focuses on local businesses to support them through cryptocurrencies by raising funds. They created their own currency and economic system to reward and support their local businesses. Most of the people there do not have access to banking and cannot start a business, Moeda allows them to raise money to start their business – promoting good values ​​and equal work opportunities.

When it comes to job opportunities, there is another plus that crypto has created: the creation of jobs such as developer and advisors – Bitcoin Beach in El Salvador has created many jobs for young people, giving them a better future.

The previously mentioned Nigeria also hosted crypto in 2020, KoinKoin was launched from the UK to be the Nigerian-focused crypto exchange to send and receive money without being overloaded.

What could be the link between Nigeria and Brazil?

The answer: South Korea, bitHolla to be precise. Nigeria and Brazil both started their crypto exchange through the HollaEx Kit, a white label crypto exchange software. This Seoul-based company has successfully developed open source software that allows anyone to deploy their own crypto exchange in less than an hour. Moeda even threw it live.

This piece of technology shows that crypto is available to anyone, no diploma or fancy equipment is needed. Crypto is the people’s choice – no one can interfere with it. Saying that the blockchain cannot be stopped unless all the computers in the world go down.

Link to watch the launch: https://www.youtube.com/watch?v=kFImtNdPEY4

As the dollar goes down, crypto goes up

People are controlled without having a say and suffer for it. About 120 out of 200 million people live below the poverty line in Nigeria, even though it is considered an oil gold mine. Millions of dollars are spent on remittances and millions of people do not have access to banking services. The dollar has been the benchmark for too long, and indirectly the United States as well.

Of course, the US dollar is not the big bad, but the institutions really unfortunately someone or something is to be blamed and this spotlight has gone to the US dollar.

Populations grew to notice it and began to move away from this supremacy. No longer than last week, Russia decided to swap the euro for gas – giving the euro a new privileged place and an attempt at de-dollarization.

So this is why dollarization was a good idea to begin with. Having a single currency would facilitate trade, but when threatened it is used against the population and used as a hidden pretext for war, so of course changes are inevitable.

De-dollarization is happening and crypto is on the rise, governments fear losing control and therefore have started to dig into crypto. Presentation of digital currencies also called CBDC: the digital currency of central banks is a crypto currency designed to be the representation of a fiat currency in the digital world. Here’s an article on the Tether Digital Dollar and here’s another on the Middle East situation on the CBCD. Much research needs to be done on the CBDC and only the future will tell of its massive adoption and impact on the financial system.

Keep in mind that although the dollar’s supremacy and its so-called exorbitant privilege these days seem to be a breach in the financial system, it was once a savior. The original goal of designating the US dollar as the number one currency was to facilitate trade and aid in the development of certain countries. That’s why we have to put things back in their time to understand the impact of the economy on people.

So, 2021 is the year of crypto.

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