161–170 of 394 posts
Earlier quoted context omitted.
I’d be skeptical about using a government wallet as well, though it could potentially make initial disbursements easier.
This probably eliminates this whole "bitcoin is privacy and independence from government" thing but I think for majority of bitcoin buyers it was not more than just a nice talking point anyway.
They have a low degree of monetary sovereignty. I don't know the pros and cons of a country like that adopting bitcoin. But their willingness to take the high risk road to do the experiment will benefit all of us.
A country the like US who has a high degree of monetary sovereignty has a lot to loose and very little go gain by adopting bitcoin. If you believe in Modern Monetary Theory. Given the way things have gone since 2008 financial crisis i believe MMT is the best model available.
Any discussion surrounding adoption of bitcoin should focus on what you gain and what you loose. Because there are always tradeoffs.
Earlier quoted context omitted.
I’d be skeptical about using a government wallet as well, though it could potentially make initial disbursements easier.
This probably eliminates this whole "bitcoin is privacy and independence from government" thing but I think for majority of bitcoin buyers it was not more than just a nice talking point anyway.
yep, That's why protests are taking place in El Salvador. We have also uncovered some security holes. https://twitter.com/Rchr2M/status/1435236141112905732 https://twitter.com/david_a_garcia/status/143525911196544614... Protests: https://twitter.com/OscarMachon/status/1435272669189087236
>We have also uncovered some security holes. What security holes? The first tweet seems to be some sort of some sort of app saying it's a virus, and the second seems to say that it collects IMEI information. Neither constitute good evidence of "security holes".
Bitcoin has a max throughput of 7 transactions per second. It's utter lunacy to suggest that it could function as a currency for a country.
This will only end in tears.
> To warm up a skeptical public, Bukele has promised every citizen $30 in bitcoin if they sign up for a government digital wallet. Ahead of the launch, El Salvador bought 400 bitcoins, Bukele said, helping drive the currency price above $52,000 for the first time since May. > In the early hours of Tuesday the wallet had not appeared on Apple Inc., Google and Huawei’s app download platforms, however, prompting a serie…
The most logical reason is that they want to connect the human identity to the wallet/address, thereby easily removing anonymity and ensuring the government can monitor their population effectively
Earlier quoted context omitted.
I think awful is how the banks of the developed world are earning money with the poorest. The fees for remitance make up for a large portion of the el salvadors GDP. The developed world is responsible for climate change, so I guess the poorest have their right to use their money how they want and not in the way some banks or you consider it. The impact of the lightning network on energy consumption is even neglible..…
> I think awful is how the banks of the developed world are earning money with the poorest. The fees for remitance make up for a large portion of the el salvadors GDP. The fees are high because the costs are high. Existing remittance channels are shackled by anti-money-laundering, anti-organized-crime, anti-terrorism, know-your-customer compliance costs (typically enforced by the governments of multiple jurisdictions…
https://www.moneyandbanking.com/commentary/2018/2/18/the-stu...
Earlier quoted context omitted.
I’d be skeptical about using a government wallet as well, though it could potentially make initial disbursements easier.
This probably eliminates this whole "bitcoin is privacy and independence from government" thing but I think for majority of bitcoin buyers it was not more than just a nice talking point anyway.
From the original bitcoin white paper:
> The traditional banking model achieves a level of privacy by limiting access to information to the parties involved and the trusted third party. The necessity to announce all transactions publicly precludes this method, but privacy can still be maintained by breaking the flow of information in another place: by keeping public keys anonymous.
Salvadorians can transfer their BTC to a tumbling service then to a an anonymous public key.
> independence from government
As soon as you transfer the BTC out of the wallet, you'll be independent from the government.
You are not required to use the government provided wallet if you don't need the $30 handout.
Because they have both Dollar and Bitcoin as legal tender, the result is unclear. In theory, because USD is still cheaper (if Bitcoin is supplied constrained as it is promised), people will trade with USD and hoard Bitcoin. However, when crossing borders, USD is more cumbersome to move around, that may deter people to import products with "cheap" USD. It would be very interesting to observe, whether they will eventua…
Gresham’s law [1] would (EDIT: loosely) predict Bitcoin gets hoarded while U.S. dollars trade. [1] https://en.m.wikipedia.org/wiki/Gresham%27s_law
Earlier quoted context omitted.
... by looking the other way while the cartels operate with impunity. My understanding was there was a handshake deal with the narcos that if they stopped murdering they'd stop checking in on them. [1] So yes, if you allow the state to become an arm of the cartels then I suppose you can call it a job well done that they're not murdering as many people. [1] https://www.bbc.com/news/world-latin-america-54192736
Seems like a reasonable decision to me. I don't see how else the government could control the cartels. Plus it's got to be decent for their economy.
Maybe the Sicilians should run for office in Italy?