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I don't think blockchains are particularly well suited for solving El Salvador's actual problems, like gang violence. There's a not entirely implausible theory
by Clewza313 5y ago
I don't think blockchains are particularly well suited for solving El Salvador's actual problems, like gang violence.
There's a not entirely implausible theory that says Bukele is going for Bitcoin specifically because El Salvador uses the US dollar and is thus prevented from taking the typical path of printing more its own currency to "solve" problems. With Tether and various dodgy custom apps in the mix, they can now print money.
https://foreignpolicy.com/2021/06/15/el-salvador-bitcoin-official-currency-printing-money/ https://foreignpolicy.com/2021/06/15/el-salvador-bitcoin-off...
- rocqua 5y agoPrinting money in bitcoin requires some really weird stuff to happen. Essentially, either you need to scam others with Tether, or you need your apps to literally lie to their users. Bitcoin was made to be deflationary. That means it was made not to allow anyone to print money. It would have made more sense for them to pick ethereum if they wanted the ability to print money. Really, the only thing I can imagine is using colored coins in bitcoin, or switching to some other currency later.
- lalaland1125 5y agoIf you look through the technical details this proposal, it 100% allows for money printing. El Salvador isn't actually giving people Bitcoin. It's giving people records in an SQL database that supposedly correspond to Bitcoin in a government wallet. The government can just edit that SQL database to print money.
- chucknthem 5y agoAnd become insolvent in a bank run?