Topic: Blockchain and Economists (Read 293 times)

To me, that's exactly why I think it's completely absurd for anyone to go with a government issued coin when you have the alternative of working with decentralized cryptocurrencies, like bitcoin. The blockchain technology is only used to exert even more control over the economy, to further the surveillance on your spending etc. that were not previously possible with cash, have a more direct impact on the economy, or to freeze assets directly.

That to me is the scary aspect of centralized cryptocurrencies.

But a lot of governments are already looking to implement their own centralized versions of cryptos, and I don't think that anyone can stop them. The push for a cashless society and increased control from the government will be furthered using blockchain technology. But I'll keep holding onto my bitcoins, thanks.

It definitely will. And not necessary in a positive way. Governments all over the world are trying to eliminate cash and shift residents to e-money (whether blockchain or bank-based). The motives behind these are simple
- Increased surveillance over what you do
- No leakage of tax revenues
- Implementation of policies like negative interest rate or demonetization

This is actually the diametric opposite of what decentralized cryptocurrencies like Bitcoin set out to achieve.

Recently I was interviewed by a well-known economics journalist…. and I was surprised.

The background: I am the CEO of a company that is going to implement blockchain technologies in small countries. The process will start by upgrading the local fiat currency to a blockchain based cryptocurrency, accompanied by tools like transfer, exchange, taxes, KYC, AML, reporting…

A currency as a cryptocurrency has many advantages and will — from my point of view — change economics fundamentally.

· Simple example: such a currency allows a government to help bypass restrictions like the lack of correspondent banks.

· More complex example: such a currency allows a government to directly work together with the population. For example, it is possible for the government to submit debit cards to farmers, so they can rebuild their farms after a disaster; without any banks involved (and within days).

These are just examples. Many other possibilities exist.

Government issued wallets on a government blockchain will be here rather sooner than later. Smart contracts will enable a much closer relationship between government and their population. In my above-mentioned example, a government does not even need to issue debit cards. They can select vendors that carry specific products/services and then tell the farmers what products/services they have been allocated to and where they can get them. The process can be fully automated and is transparent. The money transfer is done in the background.

Or what about credit loans for housing projects, or business startup loans to boost sectors of the economy. Operations that are traditionally embedded in banks / credit unions, but in future can be realized directly by governments?

The local currency as a new reserve currency asset that is equity based and a 100% reserve (like in your hands) will bring more stability to the fiat currency and to fractional reserve banking. If implemented correctly.

Here is the problem: traditional economists like the one that interviewed me, don’t take crypto serious “Sir, I covered the IMF and World Bank. I am an economist. Your idea will not work”. I rate him as a highly professional journalist and I was honored he contacted me. But these old-school economists must realize the earth is not any longer flat.

I'm always amazed and inspired by how blockchain works. I would love to see more of it. Try to read some video clips on how capable blockchain is in giving us an easy transaction. The idea behind it makes it more convincing by many companies to adopt this technology.

If blockchain technology can be spread globally, Banks' foreign exchange operations will be fatally hit.

Blockchain technology can avoid cumbersome systems and create a more direct payment process between the payer and the payee!

Each node of the block chain is a collection of functions of routing, blockchain database, mining and wallet service.

Why small countries? Technology is still not up to date,hell a lot of people don't even own a phone or a computer. Just because cost is low?Small

It won't the concept concept of economics fundamentally or any method. I dare you. People don't change. They are who they were.
Government won't bypass shit.
Government issue subsidies without the involvement of commercial banks? Your point is?
Only a couple of Governements have even liked the idea of blockchain,a lot of them still don't know the meaning or what even a blockchain is.
There'll be easy facilitation of black market and corruption much worse than the current state,and think about it.
About the underlined part: Have you ever seen anything implemented correctly except someone is forced to at a gunpoint.

You sure he/she was an economist? Sounds like a jackass. Old-school economists believe in what they learnt in high school. They are not dynamic,the education system plays a big role on how people think. Unless that is going to change,I don't see anything working properly.

Recently I was interviewed by a well-known economics journalist…. and I was surprised.

The background: I am the CEO of a company that is going to implement blockchain technologies in small countries. The process will start by upgrading the local fiat currency to a blockchain based cryptocurrency, accompanied by tools like transfer, exchange, taxes, KYC, AML, reporting…

A currency as a cryptocurrency has many advantages and will — from my point of view — change economics fundamentally.

· Simple example: such a currency allows a government to help bypass restrictions like the lack of correspondent banks.

· More complex example: such a currency allows a government to directly work together with the population. For example, it is possible for the government to submit debit cards to farmers, so they can rebuild their farms after a disaster; without any banks involved (and within days).

These are just examples. Many other possibilities exist.

Government issued wallets on a government blockchain will be here rather sooner than later. Smart contracts will enable a much closer relationship between government and their population. In my above-mentioned example, a government does not even need to issue debit cards. They can select vendors that carry specific products/services and then tell the farmers what products/services they have been allocated to and where they can get them. The process can be fully automated and is transparent. The money transfer is done in the background.

Or what about credit loans for housing projects, or business startup loans to boost sectors of the economy. Operations that are traditionally embedded in banks / credit unions, but in future can be realized directly by governments?

The local currency as a new reserve currency asset that is equity based and a 100% reserve (like in your hands) will bring more stability to the fiat currency and to fractional reserve banking. If implemented correctly.

Here is the problem: traditional economists like the one that interviewed me, don’t take crypto serious “Sir, I covered the IMF and World Bank. I am an economist. Your idea will not work”. I rate him as a highly professional journalist and I was honored he contacted me. But these old-school economists must realize the earth is not any longer flat.

I was talking about the country Dominica. The hurricane in 2017 destroyed that island. Over 200% of GDP in damages. To get the farms going again, they applied for a $10 million loan. Those small countries don't have insurance. In relation to banking services I agree. I remember back 20 years ago where a branch manager of a bank could decide things. These days it is all controlled through central offices. Branches just fill out forms. All those procedures can be replaced by smart contracts. And finally credit loans: yes, although I am hopefull. Banks are for-profit and therefore have different objectives than governments.

That is one aspect of what is expected to happen in the coming years. And right now it is all just dark n ambiguous and god knows when is the much awaited day of change gonna dawn upon this world. Change here is when the thinking and perceptions of people will change in this world and when they will accept the act that VIRTUAL is the new REAL!!
An economist cannot be expected to understand the blockchain technology, provided that he is not updated with the buzzing innovations happening around. And trust me, these traditional economists are least bothered with the virtual world because this doesn't interest them for a simple reason of governments not paying heed to this area!!

It definitely will. And not necessary in a positive way. Governments all over the world are trying to eliminate cash and shift residents to e-money (whether blockchain or bank-based). The motives behind these are simple
- Increased surveillance over what you do
- No leakage of tax revenues
- Implementation of policies like negative interest rate or demonetization

This is actually the diametric opposite of what decentralized cryptocurrencies like Bitcoin set out to achieve.

Here is the problem: traditional economists like the one that interviewed me, don’t take crypto serious “Sir, I covered the IMF and World Bank. I am an economist. Your idea will not work”. I rate him as a highly professional journalist and I was honored he contacted me. But these old-school economists must realize the earth is not any longer flat.

I agree, total centralisation. We are already on this path, bank transfers, visa debit cards
where if its less than €30 we only have to present our card to a scanner. Its all disguised
as convienience for us and a way to spend easier.

It definitely will. And not necessary in a positive way. Governments all over the world are trying to eliminate cash and shift residents to e-money (whether blockchain or bank-based). The motives behind these are simple
- Increased surveillance over what you do
- No leakage of tax revenues
- Implementation of policies like negative interest rate or demonetization

This is actually the diametric opposite of what decentralized cryptocurrencies like Bitcoin set out to achieve.