It is okay for Bitcoin to greatly aid in the economic development of a country but there must be acceptance of Bitcoin in the political or economic context of that country. Bitcoin is like remittance if the people of the country can use it properly but most of the countries work against the acceptability of Bitcoin.
The economy of a country mainly depends on the manpower, especially the more productive the manpower, the more economically prosperous the country will be. I would not consider a country's economic prosperity to be directly dependent on Bitcoin, but if Bitcoin is legalized in that country, it will certainly be correlated with that country's economic prosperity. If the bank approves Bitcoin, then if the foreign remittance is exchanged through the bank, the government will definitely get a certain part from Bitcoin, that will be one of the ways to increase the economic prosperity of the country.
Topic: Can Bitcoin play a role in the country's economic growth? (Read 778 times)
Isn't it still quite risky for a country to reserves their fund in BTC? because of its volatility, especially for a third world country, unless the country will hold it with in a very long time.
I don't think it is even so good for countries to have a lot of BTC's in their reserves, yeah i know the network is censorship resistant and anyone can buy BTC, but governments are centralized and if they control a lot of the BTC's in circulation, it may not be good for the decentralized network, and could leave it open to manipulation. However, i don't even think too many countries are interested in storing BTC in their reserves, it is decentralized and it cannot be printed nor controlled, so it is not an asset they may be interested in.They don't care about bitcoin, they don't add it to the national reserve assets not because it's decentralized or they can't control it. The simple reason is that it is not reliable as a store of value, especially when it comes to a country's reserves.
Bitcoin's volatility only benefits speculators, who are willing to take risks to get rich quick. Meanwhile, what the government needs is a stable and safe asset to guarantee when needed in emergencies. That is why governments increase their gold reserves whenever the world economy becomes unstable. They don't need a volatile and risky asset like bitcoin, we need to accept the truth.
Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
It can surely play a role but I think it could have a noticeable impact mainly if very small countries decide to use it/promote it. We all know about the El Salvador case, the experiment is going pretty well but at the end of the day we're talking about a small third world country. Let's say Brazil try to do the same, do you think it could have the same impact? For the moment, I would say no, it won't. I wish Argentina would do something about, that would be interesting.We do not have full and accurate information about what is happening in El Salvador. Their economy has indeed improved but is it due to the impact of bitcoin adoption or is it due to the wise economic policies of the country's leaders? Or even if bitcoin does play some role in improving their economy, that is not enough to assert that bitcoin can play a significant role in improving the economy of a country or the world. Because besides El Salvador, the Central African Republic is another country that has accepted bitcoin as legal tender but as a result they have failed miserably.
So we can't just look at El Salvador and jump to the conclusion that bitcoin can play a role or has the potential to improve a country's economy .
Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
It can surely play a role but I think it could have a noticeable impact mainly if very small countries decide to use it/promote it. We all know about the El Salvador case, the experiment is going pretty well but at the end of the day we're talking about a small third world country. Let's say Brazil try to do the same, do you think it could have the same impact? For the moment, I would say no, it won't. I wish Argentina would do something about, that would be interesting. 
I agree with the op about the potential use cases of Bitcoin. Attracting foreign investment, creating jobs, allowing more financial opportunities for the unbanked or insufficiently banked, and saving up on international transaction fees are all good points.
But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help.
I think this challenges can still be bypass with good understanding, even with all these challenges Bitcoin still have good advantage that will be beneficial to people. If the government are ready to accept Bitcoin from their heart it will definitely make a good impact for the people and some people can also use it directly in exchange to gain other things. I think bitcoin has the capacity of making an impact to the economy somehow if the government really knows what they are doing and what they want.But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help.
I think people have little understanding of bitcoin better compare to some years back. It is known to most people that bitcoin is volatile now because cryptocurrency is known to people very well which the volatility of the market into be strange.
How will Bitcoin impact the economy? We need to show concrete impacts if we want to convince the government, they don't need vague and unclear ideas.
I wonder, how can bitcoin attract foreign investment? How to create more jobs from accepting bitcoin when it is just a decentralized currency, a means of payment?
Honestly, I can't imagine what role bitcoin will play in the economy or how it will help a country's economy grow. According to the white paper, all I know is that Satoshi created it to be a peer-to-peer currency that helps us protect our privacy. It was not created to save the world economy, don't exaggerate its power too much.
I agree that Bitcoin can contribute to economic growth in the fields of investment and reaching out another division of the financial sector. El Salvador boasts of being the first country in the world to use Bitcoin as its legal tender since 2021. It is too early to say anything for sure but the country has seen a high number of tourists and an increase in the inflow of money from abroad due to its attraction of Bitcoin users. According to the World Bank, the amount of money sent home by Salvadorans who work abroad may be as high as 24% of El Salvador's GDP. Bitcoin could make money transfer cheaper by reducing the fees, hence sending more money to the people.
But there is a flip side too. Critics of Salvadoran Bitcoin trial often say it has boom-and-bust cycles that can hurt those who cannot afford any loss at all. Furthermore, not all nations possess sufficient technological capacity or expertise to enable smooth entry of Bitcoin. On the other hand, if done cleverly Bitcoin may help diversify economies and give banking services to people excluded by traditional banks.
But there is a flip side too. Critics of Salvadoran Bitcoin trial often say it has boom-and-bust cycles that can hurt those who cannot afford any loss at all. Furthermore, not all nations possess sufficient technological capacity or expertise to enable smooth entry of Bitcoin. On the other hand, if done cleverly Bitcoin may help diversify economies and give banking services to people excluded by traditional banks.
I agree with the op about the potential use cases of Bitcoin. Attracting foreign investment, creating jobs, allowing more financial opportunities for the unbanked or insufficiently banked, and saving up on international transaction fees are all good points.
But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help.
I think this challenges can still be bypass with good understanding, even with all these challenges Bitcoin still have good advantage that will be beneficial to people. If the government are ready to accept Bitcoin from their heart it will definitely make a good impact for the people and some people can also use it directly in exchange to gain other things. I think bitcoin has the capacity of making an impact to the economy somehow if the government really knows what they are doing and what they want.But when we talk about Bitcoin, it's also important to consider the risks and challenges. One of them is that Bitcoin largely is not accepted directly as payment, so people often need to sell it for local fiat to make use of it. Also, storing it on centralized platforms poses a big risk of losing your funds, whereas storing coins yourself means that if you lose your password, passphrase or whatever, nobody will be able to help.
I think people have little understanding of bitcoin better compare to some years back. It is known to most people that bitcoin is volatile now because cryptocurrency is known to people very well which the volatility of the market into be strange.
Bitcoin market is smaller than stock market and it does now have magical power to fix macro things like global economy or national economy. It is only helpful for people as individuals to find a magic way to get rich or enrich their wealth through investment in Bitcoin for long term.
I don't know how much the stock market is worth today, but I remember from before that the total value was about $90 trillion, so we can say that it is worth about a hundred times more than all the Bitcoins in circulation. When you look at the statistics, it is much clearer where BTC is at the moment, but this is a reality that many do not want to accept and live in some kind of illusion that BTC will improve the world's economy.
If a country can add Bitcoin to its national treasury and have good risk management for their treasury, that requires to have some other assets, not only have Bitcoin, they can hold their bitcoins for a long time and see good growth in value. But even so, it does not help to fix a national economic crisis that only can be resolved by government and combined efforts on many aspects in their country.
Many countries have very large gold reserves, and yet they have big problems - just look at the example of Italy, which is among the top countries with gold reserves, but it cannot improve its economic situation with them because the ECB does not allow them to do so. I don't know which serious country would dare to invest in BTC in the long term, given that it is still a risk, not only because of volatility, but also the possibility of hacking, forks and who knows what else.
~snip~
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Are you familiar with the current state of the economy in El Salvador? As far as I know, the number of Chivo wallet users is in constant decline, Bitcoin city is at a complete standstill, and Bukele is negotiating with the IMF for a loan to get out of the financial mess that the country is in and no one remembers since.
Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.
My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.
El Salvador is still trying to implement bitcoin in the country with various plans but so far has not achieved any significant results. Only government investment in bitcoin generates profits but they are insignificant and cannot help the economy. As far as I know their bitcoin investment is generating over $40 million in profit and how will this help a country's economy?
El Salvador's strength is tourism and its fatal weakness is gang violence. Their economy has improved somewhat in recent years as their president has somewhat quelled gang violence and boosted tourism. All of this has nothing to do with bitcoin.
People keep talking about bitcoin in El Salvador but they never take the time to learn about the economic situation there, they always assume that everything there is thanks to bitcoin but they have no proof. Also, the Central South African Republic adopted bitcoin and failed but I don't see anyone mentioning that. Bitcoin cannot improve or contribute anything to the economy, we should accept that fact.
Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.
I think the major country that Bitcoin help the economy most as the developing countries, because most of countries that have adopted Bitcoin at individual level are mostly developing countries, take El Salvador for example and also Central Africa republic who have adopted Bitcoin, it all started from the citizens before the government gave Bitcoin the legal tender in those countries.So Bitcoin economic impact is more on the individual level than government, since most countries are even anti Bitcoin even some goes as far as banning Bitcoin even though the citizens in such countries still use Bitcoin to advance their economic life's.
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
I cannot confirm for sure if a country as expected by its economy if it applies Bitcoin like El Salvador. For me this is about their readiness in dealing with all forms of consequences.
If you make El Salvador as an example, then from the investment sector it can help. The Bitcoin system is greater than the traditional financial system, I agree and we can feel it. Back again to the readiness.
We as personal making bitcoin as a long -term investment asset by making routine purchases with confidence will get a large price return when Bitcoin reaches the highest price with a large percentage of the purchase price, of course according to my mind, a country that has power over money sourced from money sourced from money sourced From income it would be better if they changed the fiat into Bitcoin and used as a long -term investment asset.
Not at the moment if you ask me. BTC could help improve a country's economy drastically if its price fluctuations would minimise to a permissible level and if LN acquired mainstream support.
It's very difficult for either of these to happen thanks to which no big government in their right mind would try and utilise BTC for improving their economy.
It's very difficult for either of these to happen thanks to which no big government in their right mind would try and utilise BTC for improving their economy.
Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
In some cases it could bolster a country's economy, I've seen that shit happen in El Salvador, and a couple other countries who accepted bitcoin as a supplementary currency, but here's the thing, why the fuck would you do that?It's not wise, cause it's volatile, decentralized meaning it's not just your citizens who will be playing with the money of your entire country, and furthermore, it's a pretty irresponsible thing to do to say the least. You don't have any other countermeasures as well as plans to support and lift your economy up, so much so that you'd end up crawling and begging to be helped by bitcoin and crypto? That's just stupid. That's no different from individual crypto enthusiasts and maximalists thinking that bitcoin's going to be the solution to their poverty. Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
Isn't it still quite risky for a country to reserves their fund in BTC? because of its volatility, especially for a third world country, unless the country will hold it with in a very long time.
I don't think it is even so good for countries to have a lot of BTC's in their reserves, yeah i know the network is censorship resistant and anyone can buy BTC, but governments are centralized and if they control a lot of the BTC's in circulation, it may not be good for the decentralized network, and could leave it open to manipulation. However, i don't even think too many countries are interested in storing BTC in their reserves, it is decentralized and it cannot be printed nor controlled, so it is not an asset they may be interested in.
Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.
Bitcoin market is smaller than stock market and it does now have magical power to fix macro things like global economy or national economy. It is only helpful for people as individuals to find a magic way to get rich or enrich their wealth through investment in Bitcoin for long term.If a country can add Bitcoin to its national treasury and have good risk management for their treasury, that requires to have some other assets, not only have Bitcoin, they can hold their bitcoins for a long time and see good growth in value. But even so, it does not help to fix a national economic crisis that only can be resolved by government and combined efforts on many aspects in their country.
Quote
My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.
Basically governments want to control things as much as possible and they don't suicide by accepting something they can not control but give power to their citizens. ~snip~
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Are you familiar with the current state of the economy in El Salvador? As far as I know, the number of Chivo wallet users is in constant decline, Bitcoin city is at a complete standstill, and Bukele is negotiating with the IMF for a loan to get out of the financial mess that the country is in and no one remembers since.
Bitcoin is not magic that saves failing economies, so how could it be when it is so volatile that in one day it can lose 50% of its value compared to fiat currencies. El Salvador is a country that renounced its own currency, and Bitcoin is just one more experiment that the current president liked, which does not mean that someone who will succeed him one day will have the same opinion.
My opinion is that Bitcoin is not intended to replace fiat currencies, but to be an alternative to them - and no serious country would ever accept something that it cannot control.
A country's economic growth will be dictated by taxes and remittances. But if Bitcoin is illegal in a country then there will be no tax on Bitcoin transactions. Economic development is not possible in a country if there is no tax so for now I think bitcoin will not achieve economic development for that country if bitcoin is not legalized for any reason.
Yes it can play a vital role in the economic growth of developed and developing countries but only when these earnings come directly under the finance department of government. Countries generating revenues by implementing taxes on resident’s earnings. So in this scenario taxes should apply on earnings from bitcoin.
Of course not. Taxation with Bitcoin is a complex proposition that should be done in coordination with centralized finance. However, a part of the conversion from Bitcoin to fiat is done by local intermediary groups and they pay taxes to the government of that country. There should be no separate taxation and provision of income tax already levied on them by the government and at the individual level. In that case incentives should be taken at the individual level because of adding more additional taxes to the country's economy. 
Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
This can also make a huge difference in economic growth since it combined traditional financial systems with blockchain technology. A developing financial system and robust macro economy, Bitcoin can attract technology-based investors to establish new businesses reflected by El Salvador through its inclusion of Bitcoin in its economy. Furthermore, expanded financial incorporation can be accommodated with Bitcoin, which allows access to savings and services that traditional banking systems are incapable of effectively offering. By reducing remittance costs and timeliness, it avails a valuable alternative to conventional transactions that benefit countries dependent on remittances. For these benefits to be realized, states should produce unambiguous regulatory structures that foster innovation while also ensuring consumer protection and economic stability. Restoration of acceptance of Bitcoin can be fueled through investment in its digital infrastructure and public education. Research into new uses of blockchains for different industries would improve their transparency and efficiency, while global cooperation can bring in very valuable insights and best practices. With these things at hand, countries would be able to use the potential of Bitcoin to boost their economies and integrate it with corresponding meaningful monetary policy actions.
Bitcoin can potentially play a role in the economic growth of a country which can make a huge difference in the multifaceted progress of that country. If Bitcoin can be integrated with the way in which the traditional financial system of the country is growing, the global economic system can be radically changed.
Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
Here are some recommendations:
Enhancing Investment and Economic Diversification: A country can attract investment and increase the scope of employment through innovative activities using the wide range of technologies of Bitcoin and Blockchain, which can greatly contribute to the economic growth of the country. Countries such as El Salvador, for example, have explored Bitcoin alongside traditional financial systems to further strengthen their economies, and their scope continues to grow.
Financial inclusion of common people: Bitcoin can contribute to the economic growth of a country by including a large population by opening access to savings and buying and selling beyond the limited services like conventional banking system.
Exchange of Remittances: Remittances are very important for the progress of a country. Bitcoin can play a real role in reducing the fees and time of traditional services when citizens of one country send remittances from another country.
From an overall perspective, a country can explore Bitcoin with their economy in the light of wide knowledge of the strategies to increase the holding and increase the scope of transactions and access to the exchange, which can contribute to the growth of that country in a big way.
Looking forward to your more recommendations.
So for me Bitcoin can make a significant contribution to a country’s economic development if it is integrated into traditional monetary systems or through blockchain technology. By developing economic policies and diversifying their economies, countries can become attractive to new technologies that create jobs. Similarly, bitcoin can promote financial inclusion by bringing banking and communications to a population that is underserved by traditional banks. We all know that the feature of Bitcoin can help in transferring funds abroad, reducing the transaction costs and processing time involved, therefore supporting economies based on such transfers. So for sure Countries should then support this by establishing a clear regulatory framework that encourages innovation while preventing security and regulatory concerns and investing in digital infrastructure support to adopt Bitcoin. And thats only my take on this topic but a lot can be done if all countries adopt to this innovations
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