An interesting topic of great depth and given the conditions in which we are currently immersed, it would not be unreasonable to think that more than one country is thinking of placing this option on the table. I think it is one of the best known and safest ways to deal with the instability that we can have in a hyperinflationary environment.
Of course, not everything is wonderful, opting for dollarization has its consequences at the macro level and the fact is that the northern fiat currency is not really going through one of its best moments either. However, this situation has made some begin to question not only the value but also the confidence that the dollar could provide in order to protect legal reserves.
But many unfortunately find themselves in a position where there is no way out other than taking the dollarized path, with clear knowledge of what they are exposed to, such as plunging into the alterations experienced by the issuing country of the currency, losing the central role of the central bank or simply lose that competitiveness that you could have when accessing cheaper raw materials. The classic example is found in countries like Venezuela and Argentina. However, many more are going down this path, mainly in those who knock on the doors of radicalization.
The path of dollarization leaves other weak points that lie in wait for those who participate in these games. The shortage of foreign exchange and volatility destabilize these microeconomic environments, where the currency of national circulation is increasingly a species in extinction.
The reactions are not the same, the board is being cleared to see each of the strategies that will guide the countries to have a better position in the new world order. Asia, led by China, has already decided the way forward and its digital Yuam grows and strengthens every day. The countdown is active and the alarm is set for this new beginning.
Europe continues as an observer, and the "Union" does not clear up and add doubts about digital action. The Euro Digital is just an idea under study, but not for France, Germany or Switzerland. We will see what comes out of all this mixture of the old continent.
Latin America continues to be one of the hardest hit regions, since the dollar still weighs in many economies to the point of only having the national currency as a simple observer while the currency continues to compromise the coffers of the nations.
Africa, if it knows how to move, but this strategy of cryptographic understanding responds more to an escape route, however, adoption is not classified as empty ideas.
These scenarios will increase, and tokenization a more real way of escape for that dollarization that is currently only supported with ideas and unfinished spaces that are silenced with the sound of printers. For Latin American, African and other countries with inflationary presences, these gaps are fed by cryptocurrencies. Tokenization is a reliable alternative, and the beauty of this will always be its independence and revelation from systems that always try to obtain an unfair advantage.
This content is own and in this writing you will not find any plagiarism. It is also published on my blog Hive.Blog, Steemit and Publish0x under the following links.
https://hive.blog/hive-175254/@alquimista1501/dollarization-or-tokenization
https://steemit.com/hive-175254/@alquimista1501/dollarization-or-tokenization
https://www.publish0x.com/cryptographic-alchemy/dollarization-or-tokenization-xgdrezw
Nice post bro