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Topic: Not your vault, not your money. Why some nation-states will HODL Bitcoin. - page 2. (Read 221 times)

hero member
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The Taliban will never EVER see that money again.

Don’t be so sure about that, because until a few years ago these same Taliban were the world’s number one enemy and the terrorists against whom the US spent hundreds of billions of dollars - and then suddenly overnight they became good guys. Funds frozen abroad now serve as a means of forcing them to move in another direction, in fact one that would be in the interests of the US and the EU.

It is completely absurd to bring the Taliban (at the moment) into any connection with Bitcoin, they have just banned all foreign currencies in the country.

But let's say they have a large amount of BTC, and if their deposit addresses are known, it would be very easy for these funds to be blacklisted (at least as far as all known crypto exchanges are concerned).
True, frozen funds are going to be used as bargaining chip by the west to force Taliban loose their extremist policies in exchange for the money. In the end every sides win politically talking... And considering how bad the situation already is, I think that is not a terrible attempt by the west to make things a little better.

On the other hand, in a scenario where bitcoin were adopted in Afghanistan, it wouldn't be good for Taliban anyway, because common citizens could convert their funds into the digital currency, fearing a seizure from the terroristic group, what would weak the influence of the government in the local economical scenario. Actually, crypto miners ran away from the country as soon as Taliban took the power, fearing retaliation against their businesses and freedom of speech by censoring digital gadgets and even the internet.
legendary
Activity: 3080
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That's true! That's how the banking system works and that's why people need cryptocurrency. No doubt about it!

But that brings us to the next question - if a sovereign state wants to avoid such international banking ban, what would be the best solution - adopt an existing cryptocurrency or create a new digital currency system like Petro? I know petro failed but that doesn't mean all other state backed cryptos will fail too!
legendary
Activity: 3024
Merit: 2148
https://www.xm.com/research/markets/allNews/reuters/just-give-us-our-money-taliban-push-to-unlock-afghan-billions-abroad-44779875

The Taliban will never EVER see that money again. If only there was a robust, self-sovereign, censorship-resistant currency that an entity can actually HODL in their own actual custody, without any counterparty trust. Cool

But this is an argument for third-party custody, not against it. If the deposed Afghani government held their reserves in Bitcoin, there would have been a risk that the funds could have ended up in the hands of Taliban, because the government would either had to make a Bitcoin transaction to some other party outside the country or try to physically move the wallets. The first option requires a trusted third party, the second option is vulnerable to physical attack by Taliban.

I hope we all agree here that billions of dollars not falling into the hands of Taliban is a good thing?
legendary
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The Taliban will never EVER see that money again.

Don’t be so sure about that, because until a few years ago these same Taliban were the world’s number one enemy and the terrorists against whom the US spent hundreds of billions of dollars - and then suddenly overnight they became good guys. Funds frozen abroad now serve as a means of forcing them to move in another direction, in fact one that would be in the interests of the US and the EU.

It is completely absurd to bring the Taliban (at the moment) into any connection with Bitcoin, they have just banned all foreign currencies in the country.

But let's say they have a large amount of BTC, and if their deposit addresses are known, it would be very easy for these funds to be blacklisted (at least as far as all known crypto exchanges are concerned).
legendary
Activity: 3668
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But Wind_FURY does have a point, storing your nations money in another nation can have repercussions for you. Or if you look at it from the other side, it does let the nation who has your money control you a bit.

It's a double edged sword.
On one hand this proves the country's solvability and it may be OK to be done in a way a third party stops you selling it all too fast (to protect others), hence not great for Bitcoin (maybe unless done somehow with some x-of-y multisig wallet).
On the other hand, as said, the other country can do things from freezing those funds to even seizing them.

However, now all foreign currencies are banned in Afghanistan.
hero member
Activity: 3150
Merit: 937
Do you imagine what will happen to Bitcoin,if the taliban regime actually bought and hold Bitcoins?
The trolling about Bitcoin being "the currency of the scammers,criminals and terrorists" will return in full scale.
We don't need this s*it.The big western countries might even decide to ban Bitcoin,only because a regime like the talibans would buy and use Bitcoins.
The USA had spent 2 trillion dollars in Afghanistan with zero results.Of course that they will block a few billion dollars of Afghanistan reserves held by US banks.
legendary
Activity: 3500
Merit: 6320
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It's more likely they'll embrace Yuan rather than Bitcoin since their relationship with China government still growing.

Now that would be interesting.

China / The Chinese government regulates religion in general and regulates it a lot. Beyond that they are very anti Islam. Would they deal with the Taliban on an even scale or would they just take what they want and screw them over? Or would the Chinese government try to enforce their will on them if the Taliban wants to trade.

But Wind_FURY does have a point, storing your nations money in another nation can have repercussions for you. Or if you look at it from the other side, it does let the nation who has your money control you a bit.

-Dave
legendary
Activity: 1372
Merit: 2017
I get the idea, but that putting Bitcoin as something that helps the Taliban doesn't look good to me. Maybe they will learn their lesson and buy Bitcoion for what is good for them but they have a mentality of the Middle Ages. They don't seem to be very open-minded about decentralized systems.


legendary
Activity: 2898
Merit: 1823
Quote

Afghanistan's Taliban government is pressing for the release of billions of dollars of central bank reserves as the drought-stricken nation faces a cash crunch, mass starvation and a new migration crisis.

Afghanistan parked billions of dollars in assets overseas with the U.S. Federal Reserve and other central banks in Europe, but that money has been frozen since the Islamist Taliban ousted the Western-backed government in August.


https://www.xm.com/research/markets/allNews/reuters/just-give-us-our-money-taliban-push-to-unlock-afghan-billions-abroad-44779875

The Taliban will never EVER see that money again. If only there was a robust, self-sovereign, censorship-resistant currency that an entity can actually HODL in their own actual custody, without any counterparty trust. Cool
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