I'm not sure if Ars Technica is considered a fair and balanced source of cryptocurrency news or if it is known as a source of FUD, but it posted this article in June about the Bitcoin situation in El Salvador:
My question is why would El Salvador-- or any other nation in similar circumstances-- want help from the World Bank or any other part of the global banking system? I thought the idea was to bring money into El Salvador by eliminating as many middlemen and intermidiaries as possible.
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Well I think its probably because they still need funds and world trade is still something they want to keep. After all, they would want to make sure their economy is running.
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El Salvador can still trade with other nations. It's not under any sort of sanctions regime. I just doesn't need the World Bank. For many nations, the World Bank and IMF (and the rest of the nation-state-level banking system) is a scam; just ask people in Cyprus, Greece, and Italy.
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The problem is that the World Bank and IMF tends to be cushy buddies with a bunch of countries and could definitely affect the economy and what happens going forward.
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In theory, the World Bank, the International Monetary Fund (IMF), and other global financial institutions formed by partserships of nation-states after World War II were supposed to help newer nations and developing nations improve their economies to get out of poverty and become relatively wealthy. While the World Bank and IMF did that, it came at a cost for client nation-states. This cost has hindered their potential to become much better off economically than they are now.
Essentially the major banks running the World Bank and IMF benefit while their "customers" struggle to pay down debts. World Bank and IMF do to nation-states what banks do to people, and you can see how that turned out for us.
Maybe there needs to be a cryptocurrency (not CBDC) geared for nation-states as a counter to World Bank and IMF. The problem with this concept is keeping this nation-state crypto decentralized.
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Apparently, they have a lot of debt, which costs them a lot and so they are looking for help to bridge that gap and balance things a bit
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Debt is what keeps nations poor-- even the United States. When a nation has more financial obligations than it has assets to fulfill those oblications, it is a poor nation.
Maybe crypto can be used by El Salvador as a way to fulfill those financial obligations and draw down that debt burden. If the move to crypto can spur direct and secondary investment in things associated with crypto to make it work, then it can serve as a nodel for other nations to follow.
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Yup, that's what they are trying to fix with the programs offered by those entities.
They might have to do that on their own now, though
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They should do it on their own, or they should allow their respective private sectors to do it for them. Keep World Bank, IMF, and their ilk our of it.
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The problem with the private sector is that they will never risk that much money for the same low rates that those institutions offer so it's a no-go.
But either way, they are probably gonna have to do that on their own anyways because the World Bank and the IMF aren't happy about the whole crypto deal
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That's because the private sector uses its own money. Even if private sector companies are foolish in spending money. they are held to account for it and that's never fun. Public sector institutions, on the other hand, use Other People's Money, so they don't feel so bad in spending it or mismanaging it.
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That's very true. They excel at mismanaging resources of all kinds. Hopefully one day they won't be the ones that make the rules
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