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I mean technically it could. For example, to buy goods from China in AU, I need to pay in USD./ For 100 USD in goods, I could have to send AUD cross border to
by SgtBastard 4y ago
I mean technically it could. For example, to buy goods from China in AU, I need to pay in USD./
For 100 USD in goods, I could have to send AUD cross border to receive 100 USD and then definitely have to send 100 USD cross border to China - nominally triggering 200 USD in payment volume for 100 USD in GDP.
And then for companies using a Double Irish, Dutch Sandwich... well, the volume adds up.
Crypto still isn't the answer though.
- lovich 4y agoI asked because it seems logically impossible since cross border payments are included in the aggregate of the world gdp. The same mechanism you are describing for the velocity of money also works inside national borders