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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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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Yes and no. I agree they won't risk that much for low returns, BUT they are also able to do things much cheaper so their margins can be much better. As you say, governments just hemorrhage money all over the place. Private companies streamline things to make a profit. They can also use these low rates to get people in the door and make up for their low returns by upselling into higher margined products.
If someone can make money, they'll find a way to do it.
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