Government Adoption for Global Finance

in btc •  10 months ago  (edited)

Then, will it be possible for a small oil country in South America, with the worst economy in the world, to be the "Precursor" Nation in the use of cryptography in global financial transactions?


INTRODUCTION

It is fascinating to analyze the fact that many discoveries, achievements and advances of Humanity have been achieved by fortuitous situations and by simple mistakes made by those who would later bear the reputation of "creator" or "precursor."


Thanks in large part to your inclination to have a dirty laboratory. British bacteriologist and Nobel laureate Sir Alexander Fleming discovered the most widely used antibiotic in the world, penicillin. In the summer of 1928, Fleming left his laboratory at St. Mary's Hospital for a two-week vacation. As usual, he did not clean before leaving, leaving bacteria cultures growing on the plates he was studying. When he returned from his vacation, Fleming discovered that in many of his dishes mold had grown. When ordering them, sinking them in a Lysol bath to kill the bacteria, he noticed something strange in a certain dish. The blue-green mold that grew on it seemed to have destroyed the Staphylococcus aureus bacteria that had been growing on the plate.


Today we are at the door of witnessing one of the greatest advances in the adoption and usefulness of cryptography worldwide. And the most surprising of all this are the reasons that would be propitiating this event.

"The situations of stress and despair often tests the creativity of the human being."

The Venezuelan government is currently surrounded by a series of systematic economic sanctions applied by the US government that prevents it from carrying out financial and commercial transactions with many companies and companies around the world, isolating it from the global financial system.

These measures directly affect the Venezuelan state oil company PDVSA, which has been unable to make payments to suppliers and also charge for the distribution of oil to its buying partners.

GOVERNMENT ADOPTION

In search of a viable solution that escapes these sanctions, the Venezuelan Administration has resorted to cryptocurrencies.


The Central Bank of Venezuela (BCV) is conducting internal tests to determine if it can keep cryptocurrencies in its coffers, according to four people with direct knowledge of the matter consulted by Bloomberg.

The efforts come at the request of Petroleos de Venezuela (PDVSA) that seeks to send Bitcoin and Ethereum to the BCV, and that the monetary authority pays the suppliers of the oil company with the tokens, according to Bloomberg sources.

REASONABLE DOUBTS

Banking entities avoid the use of cryptography, due to KYC requirements and possible money laundering problems that may arise and cause defaults.



It is still unknown how PDVSA acquired Bitcoin and Ethereum, but the truth is that in order to sell them in the open market and obtain American currency the company must register in an exchange and be subject to due diligence. For this reason PDVSA is demanding that the BCV honor its debt commitments using Bitcoin since the central bank would be less exposed to possible blockages.

CONCLUSION

Regardless of the reasons that are pressuring the Venezuelan Administration to implement cryptocurrencies in its international financial transactions, this would mark a before and after in the way trade is done in the global financial market.
I believe that it is precisely the use of cryptography in these types of transactions that is the real objective when we talk about cryptographic mass adoption. This would be the milestone to be reached, the step that many governments of the world have not yet dared to take, although Russia and Iran are currently considering Bitcoin for their transactions in order to avoid sanctions.

This would imply a change in the political and economic order of the world.

Then, will it be possible for a small oil country in South America, with the worst economy in the world, to be the "Precursor" Nation in the use of cryptography in global financial transactions?


@juanmolina


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Hello dear @juanmolina, interesting information brother.

Then, will it be possible for a small oil country in South America, with the worst economy in the world, to be the "Precursor" Nation in the use of cryptography in global financial transactions?

Well, as I said before, on occasions, unexpected events create favorable situations or scenarios, although in the case of Venezuela we do not know how everything will end.

It is amazing everything that cryptography is achieving, if this can help ordinary Venezuelans in their needs it would be a good thing, but as I said before with the government we have we do not know what to expect.

Great article brother, congratulations and continue giving hope.
@fucho80

Although the reasons that are causing this phenomenon come from negative acts, the result of governments adopting cryptography to meet international commitments would be a big step for the market.

Hi @juanmolina
Friend, I think that this type of government will always look for ways to take out its slice for the benefit of a few and quickly thinking about the country.

If so, I think it would also bring instability to these cryptocurrencies, but we still have to wait for this government to develop. remember something they are experts in paying international media to throw balls and see then measure the behavior and response of all.

so I keep watching from afar with a very reserved opinion-

I honestly do not believe that these acts negatively affect the crypto market. On the contrary it would be very beneficial if governments adopt cryptography for their international transactions.

I remember reading that for a while the world of cryptocurrencies was related to the black market of the "dark network", in which you could hire hired assassins, hitmans or buy anything illegal, that earned him a very bad reputation and did not help its adoption massive. Example: Dark Side of the Coins: Cryptocurrencies on the Darknet

It is true that several countries are trying to create their own crypto assets, national cryptocurrencies and other forms of transactions that allow them to evade international sanctions, but this opens up new doubts.

In part it is like the problem of laundering money from "blood diamonds" or how to move capital generated by drug trafficking, illegal weapons or slaves.

Time
Source of image

So it generates suspicion that a country, indicated as one of the worst in terms of the index "transparency of administrative processes" (indirect way of pointing out the corruption of a government), generates its own blockchain ... more when we check that it has certain peculiarities.

map
Source of Map of Corruption Perception index 2018

Well, it's pre-mined, that's not entirely weird; but the white paper has undergone continuous modifications in the development of the project, again this is something possible; There was talk of income generated by its presale with three different amounts by officials of the high government of Venezuela, that is no longer good, it does not help build trust.

This is perhaps the worst point, cryptocurrencies are based on the confidence that the blockchain in which they are generated can meet the expectations of its users, but if it does not clearly meet or directly hide how key parts of itself will work , because that does not favor and does not make you attractive.

pic
source of image

You should make these posts... LOL not comments...

Well, many of the posts were born of comments in which I exaggerated the extension a bit and I found them useful to publicize some things.

I may take your idea and write it in a few days.

I have also had the idea that your comments are of such a high level that they can easily form excellent articles.

Thanks for the comment. Certainly, on many occasions I wander and end up writing and adding much more content than I thought at the beginning.

The most striking thing is that although the Venezuelan government created its own cryptocurrency, they plan to carry out these transactions using BTC and ETH.
It would be necessary to determine the origin of these funds to know if we are talking about money laundering.

Considering that we have two years that the nation's budget is not published and that the "Memory and Account" is not delivered to the Legislative Assembly for its evaluation ... Well, the quality of transparency is not very good.

It cannot be assured that it is money laundering, but it is not possible to clarify where the money comes from or what economic activity produces it.

I totally agree.

Hahaha my esteemed friend @juanmolina. Seems like you finally decided to dive a little bit deeper down the rabbit hole of these thorny subjects. eh?

It is still unknown how PDVSA acquired Bitcoin and Ethereum, but the truth is that in order to sell them in the open market and obtain American currency the company must register in an exchange and be subject to due diligence.

Nah! it's not necessary at all that Vzla must sell their stash of cryptocurrencies only in the open market looking to obtain solely 'American Currency' to honor their financial commitments and collect debts from their debtors. ¿Why should they?

Venezuela now have many other vias to circunvent international financial & banking sanctions based on merely U.S. Greenbacks only.

Neither we currently need to go forcibly through the restrictive Belgium-based cross-border payment system operator and its European & Northamerican watchdogs SWIFT protocol exclusively to transact.

There is a great possibility that Vzla is right now switching to a Russian-operated international payments messaging system as an alternative to SWIFT, before new ongoing U.S. sanctions uptick against us.

And well, there are also many new worldwide events going on around. That if you are not afraid to click on the links in this comment. You will have an even clearer picture of how things are going in our country. };)

Cheers!!

Hi my friend.

Hahaha my esteemed friend @juanmolina. Seems like you finally decided to dive a little bit deeper down the rabbit hole of these thorny subjects. Hey?

I confess that I have been avoiding this topic for a long time, but it is so overwhelming that I decided to address it.

Thanks for the links, I appreciate it.

@juanmolina, In my opinion Cryptocurrency Space will going to fill that Economic Imbalance Point for many. Stay blessed.

Posted using Partiko Android

This could be the first step. At the moment the governments of Iran and Russia are also handling the possibility of fulfilling their international obligations by paying with Crypto.

That sounds empowering step for the Cryptocurrency Space. Let's see.

Posted using Partiko Android

Interesting thoughts here. Thanks for sharing. #Projecthope

Thanks you dear friend.

They're handling a great option.

It would be a smart way to escape all those sanctions.

The world is in a changing stage on a large scale, the cryptographic world as a great protagonist.

I certainly believe it can work for them.
But: what impact would it have on the crypto market?

So the great world powers would also try to regulate crypto?

They're probably already trying to regulate cryptography. They just don't do it openly.

What we must be clear about is that everything is just around the corner.

Hi @juanmolina
This is an incredibly insightful post, and I think you correctly seize upon the power of randomness to effect major change. But additionally we are seeing something unfold here where the desperation of a single government working in concert with other desperate governments may create something larger then the individual players, an incredibly disruptive link between Iranian and Venezuelan oil, the worlds most important commodity and cryptocurrency. Plus their efforts to avoid economic sanctions from the worlds preeminent economic power, if successful will mark the start of a global economic revolution and potentially disruption of the current world order giving Iran weapons other then military and other countries options, which will turn the world upside down.

I am glad that you have detected the subtlety of the factors that I did not want to delve into but that are present in the post. The idea was precisely that the reader managed to develop the complexity of events with his own intuition.