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As a topical counterpoint, governments can also just switch off the existing currency in favor of a new currency and create a cash scarcity crisis when theres n
by bogomipz 4y ago
As a topical counterpoint, governments can also just switch off the existing currency in favor of a new currency and create a cash scarcity crisis when theres not enough of the new currency in circulation. This is exactly the situation in Nigeria right now. See:
https://www.theguardian.com/world/2023/feb/15/angry-protests-erupt-across-nigeria-against-scarcity-of-cash https://www.theguardian.com/world/2023/feb/15/angry-protests...
Another recent example of a hard currency crisis is what's been happening in Lebanon, where the government simply switched off full access:
https://www.ft.com/content/a710fa12-e7fe-4aab-8e4f-962f01addeea https://www.ft.com/content/a710fa12-e7fe-4aab-8e4f-962f01add...
- galleywest200 4y agoI mean they could, but would a country as wealthy as Switzerland just break all business relations like that?
- 8ytecoder 4y agoI mean would they do that for digital then?
- dijit 4y agoall vs some. I can disable your bank account rendering you unable to be personally solvent. But in order to do so with the cash you have I would have to basically disable everyones account.
- bogomipz 4y agoThe parent I was responding to was not referring specifically to Switzerland, in fact they just said "Government" which is about as general as you can be. Further Nigeria is also wealthy, even if the concentration of wealth is in the hands of very few. Nigeria is the largest economy in Africa and 31st in the World by GDP.[1] [1] https://en.wikipedia.org/wiki/Economy_of_Nigeria https://en.wikipedia.org/wiki/Economy_of_Nigeria
- seanmcdirmid 4y agoThey just did that a few years ago. I now have a bunch of old Swiss cash that can only be exchanged at the Swiss national bank. Annoying.