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I agree with the argument that it doesn’t make sense for the United States. Other countries using USD already don’t have control over monetary policy.
by rytill 6y ago
I agree with the argument that it doesn’t make sense for the United States. Other countries using USD already don’t have control over monetary policy.
- camgunz 6y agoOh yeah, totally fair and an interesting difference between Diem and other cryptocurrencies. I still think volatility and transaction latency/costs are an issue, but assuming we fix those (and stipulating they can be fixed) it doesn't seem unwise for smaller countries to use cryptocurrencies. It would more or less be gold standard monetary policy in a box, and while that system has drawbacks, a nice thing about it is it's pretty hard to corrupt. It would be harder (not impossible, but meaningfully harder) to manipulate currency and politically choose winners and losers via monetary policy, which is a big deal especially for growing or newly stable countries. But for those countries, it really seems like choosing Diem is the worst of both worlds. You're still pinned to the Dollar, you're still at the whim of unaccountable controlling stakeholders, and you have all the downsides of cryptocurrency on top of it. I struggle to think of a group outside of Facebook that Diem is at all good for, honestly.
- rytill 6y agoAlso agreed on Diem. My best guess is it’s a way to legally get around the legacy financial system to some end. Which end I don’t know yet.