Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
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Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#2Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#3I think the better word is clarified.
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#4There's no data here... it's just a statement by bankers about banks.
It's going to get upvoted entirely for the sentiment, but there's literally no new info here.
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#5The article is devoid of substance.
> All but two of the top 20 countries for crypto adoption are emerging markets, with countries like Venezuela, El Salvador and Nigeria becoming test beds for whether cryptocurrencies could offer a balm to countries ravaged by inflation and depreciating official currencies.
There is a reason why people in Venezuela and Argentina flock to currency different from the wildly inflating fiat currency.
> But the central banks group said that crypto assets increased financial stability risks in emerging market economies, as a weaker rule of law could make it harder to enforce contracts, while “inconsistent enforcement can create confusion and raise market risk”.
These countries already have weak rule of law. If anything, smart contracts could be an improvement where presidential candidates are assassinated and narco terrorists bribe judges and police.
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#6Cryptocurrency is, in a sense, a bottom-up tool against top-down state control of a finance system. This is not strictly a good or a bad thing; just a thing.
If the people of a country have a "common law" underlying their bottom-up interactions, that already works on its own as a basis for a productive and growing economy — but a totalitarian state has imposed top-down laws that interfere with that productive economy — then crypto will help "route around" that totalitarian state, and thereby help the economy.
If the people of a country include a large criminal element that would forcefully put themselves in the position of rentier middleman, extracting all margin from interactions in the economy for themselves and so starving the country of growth capital — and the state has imposed top-down laws that interfere with that rent-extraction, in an attempt to get the economy going in the right direction — then crypto will help "route around" that well-meaning state, and thereby reinforce the criminal capture of the economy.
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#7[dead]
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#8Cryptocurrency is, in a sense, a bottom-up tool against top-down state control of a finance system. This is not strictly a good or a bad thing; just a thing. If the people of a country have a "common law" underlying their bottom-up interactions, that already works on its own as a basis for a productive and growing economy — but a totalitarian state has imposed top-down laws that interfere with that productive economy…
> If the people of a country include a large criminal element that would forcefully put themselves in the position of rentier middleman, extracting all margin from interactions in the economy for themselves and so starving the country of growth capital
Isn’t this the business plan of every failed/fraudulent crypto exchange?
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#9The article is devoid of substance. > All but two of the top 20 countries for crypto adoption are emerging markets, with countries like Venezuela, El Salvador and Nigeria becoming test beds for whether cryptocurrencies could offer a balm to countries ravaged by inflation and depreciating official currencies. There is a reason why people in Venezuela and Argentina flock to currency different from the wildly inflating…
I always thought the word "contract" in crypto was more of a metaphor than an actual contract. Kind of like how filesystems have "folders" even though the "folders" in a filesystem aren't anything like real folders at all.
Re: Crypto has ‘amplified financial risks’ in emerging markets, central banks warn
#10There's no data here... it's just a statement by bankers about banks. It's going to get upvoted entirely for the sentiment, but there's literally no new info here.
don't discount the lucky 10k so easily