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Bitcoin Beach Project in El Salvador
- ArtWomb 5y agoCool. No crypto-to-fiat exchange necessary. Salvador becomes the lab: a pure BTC medium of exchange for local goods and services, as well as receiving remittances internationally. Up close, it just looks like scanning a QR code ;) Bullish for BTC Maximalists. And perhaps bullish for Miami as a crypto hub if LATAM adoption accelerates. Venezuela already proving something of a testing ground. My question: how to peg the price of staples (gas,bread,houses) so they are not subject to price volatility of the underlying crypto currency?
- graeme 5y ago> how to peg the price of staples (gas,bread,houses) so they are not subject to price volatility of the underlying crypto currency? The only way to do this generally is to have an entire country functioning in a currency. If, say, you earn in USD and live abroad, you face more volatility than someone earning in local currency, as exchange rates can swing rapidly. But having all transactions in a country follow the local currency stabilizes things. Crypto is this situation times 10,000.
- ncpa-cpl 5y agoEl Salvador has used USD as a currrency since 2001.
- graeme 5y agoWhat’s your point? That’s consistent with my example: everyone used USD so all economic transactions are grounded in it and nothing fluctuates. The consequences of adopting a foreign currency are lack of control over monetary policy, rather than day to day fluctuations.