Cryptocurrencies and governments

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Avatar for Diego_4400
2 years ago

Enough has already been written about the news that a Central American nation (El Salvador) has created legislation for cryptocurrencies and that is why I want to make my own reflection on how I have been seeing and living this process.

The enthusiasm for the new.

At first I was quite happy with the news that in El Salvador there were going to be more opportunities with cryptocurrencies. At this first moment, I shared information about the news and even debated with some people about the benefits that this would bring to the economy of El Salvador and Central America.

Deeper reflections.

Later, a few days after the news was announced, I began to ask deeper questions on the subject. Actually one of the things I like the most about crypto assets is volatility. Contrary to most people, I like volatility, since I believe that, when applied well, it can be a capitalization instrument. So the interference of governments and their interest in maintaining a certain stability in their economy could lead them to intervene in the free market of cryptocurrencies to implement "stability" measures, this being bad for investors who want to capitalize.

Another of my fears began to be freedom and privacy, two banners of the principles of cryptocurrencies, but which could be compromised by government intervention.

The official information.

After the official explanation of the authorities of El Salvador, I think that many of my fears have dissipated a bit, since they have tried to make an intelligent balance between the needs of the government and those of the investors. I hope that other Central American governments will take this example, but in any case my ideal is not that cryptocurrencies are legal tender in all countries. I believe that a balance between physical money and digital investments is necessary for the window of opportunity to remain open.

My personal conclusion.

In any case, I prefer to see digital money as crypto assets and not as cryptocurrencies. I see that each project has its uses and the ecosystem complements itself, which is good for the development of many ideas and it is good for investors. But I do not see the projects as legal tender cryptocurrencies in all countries as I believe that this would take away opportunities for new entrepreneurs and help maintain the equal status quo and take away opportunities for social mobility.

I would like to know your opinion on this topic.

Spanish version:

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Avatar for Diego_4400
2 years ago