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Local currencies are a thing since the middle age. They allow for a distinct set of rules (=! Inflation rate) governed by “local” representatives. In strong eco
by lucasverra 5y ago
Local currencies are a thing since the middle age. They allow for a distinct set of rules (=! Inflation rate) governed by “local” representatives. In strong economies (like g7), it does not make much sense, granted.
You may lose on the exchange processes vs “the global currency”, but your community may not care since aiming to trade locally.
PS : in constant inflationary economies (read Argentina, i think 600% in 10y), crypto is mainstream now for regular Joe's. Stable coins are all the rage to fight inflation.
- joosters 5y agoStable coins are all the rage to fight inflation. 'Regular Joes' call them dollars, they exist as pieces of paper you can hold in your hand. They don't need to play silly games with crypto scammers.
- nimchimpsky 5y agodollars don't fight inflation. I think the previous comment is confused with terminology
- lucasverra 5y ago- Do you know what currency controls are? - it's the government telling how much you can have of those dollars - it's the government mandatory currency conversion to local currency when receiving dollars from outside the country. Gvmt keep the dollars and hand you local currency (that one that is loosing value by the day)
- pjc50 5y agoYes. Countries not using dollars are exposed to conversion risk and potential shortages of hard currency. People whose native currency is the US dollar are not exposed to this risk, which is why all the inflation hawk stuff tends to look silly.
- unstatusthequo 5y agoHolding cash during inflationary periods doesn’t fight inflation. Your dollar becomes less valuable.
- nimchimpsky 5y agoa stable coin in crypto is pegged to the us dollar. Do you mean a non inflating currency like btc, but thats not referred to as stable coin.
- anm89 5y agoAs the other commenter noted , I think you are misunderstanding what a stable coin is. A usd stable coin entitles you to one dollar. The same way a dollar bill entitles you to one dollar. You can use both of them to try to get further yield but they both entitle you to a dollar.