logo
logo
Sign in

Bitcoin Becomes Legal Currency Again, Human Destiny Changes

avatar
Borderless
Bitcoin Becomes Legal Currency Again, Human Destiny Changes

In existing societies, we rely on government-issued fiat currencies - which generally provide the security, stability, and standardization of transactions, all of which are fundamental qualities of a successful fiat currency. But what happens when the government fails? What happens when an economy or a country is in crisis? Small and weak countries such as El Salvador and the Central African Republic are unfortunate examples where government-issued currencies have disappointed their people.

 

Bitcoin was included as legal tender with the passage of the Central African Republic Parliament Act on April 21, 2022. This is also the second country in the world to date (the first being El Salvador on September 7, 2021) and the first country in Africa to adopt Bitcoin as legal tender.

 

Countries and regions flock to the legalization of cryptocurrencies.

 

The global adoption and growing popularity of cryptocurrencies has made governments and educated nations realize the true potential of cryptocurrencies and their underlying technologies. Following El Salvador, an autonomous region in Portugal, Madeira, and a special economic zone in Honduras have recently approved Bitcoin as legal tender, providing a more secure and regulated framework for their people.

 

In the two-month-old Russian-Ukrainian war, Europe and the United States imposed economic and financial sanctions on Russia, which led Russia to accept Bitcoin as a means of payment.

 

The super-sovereign digital currency, the algorithmic power-based economy sweeping the world has set off.

 

El Salvador, Central African Republic economic situation?

 

In terms of politics, they have suffered from colonial rule, wars, and social unrest for a long time in history. After independence, coups and autocratic dictatorships are still emerging one after another, and the social structure is controlled by various gangs;

 

The economy is dominated by agriculture, the annual GDP growth rate is very low, the inflation is very large, and it belongs to the real backward country;

 

In terms of currency, there is no sovereign currency and has always relied on the US dollar for settlement.

 

Using bitcoin as legal tender will change the country's infrastructure. Adopt appropriate rules and regulations to accept cryptocurrency as the legal tender and legal payment method of the country. Better development and economic performance are envisaged through the use of cryptocurrencies.

 

Why Bitcoin?

 

In terms of global consensus, scarcity, anti-inflation and other characteristics, Bitcoin uses blockchain technology as a peer-to-peer transaction system to improve local and international exchanges by providing better cross-border transactions and flexible transaction costs, thereby increasing economic efficiency. Cross-border transactions are critical, especially in the presence of sanctions. Solving Economic Sanctions with Bitcoin. 

 

In the face of economic turmoil, holding local currency or U.S. dollars puts citizens at risk of hyperinflation, so residents have a better chance of using cryptocurrencies for international (and local) transactions. Choose payment options, storage, and use of value measures.

 

Using Bitcoin to de-trust the financial properties of cryptocurrencies may indeed be a better choice! Bringing new governance to society.

 

Potential, Challenge

 

Small and weak countries have no sovereign currency. More governments are considering ditching existing fiat currencies and embracing existing cryptocurrencies. Restricted by its own centralization, the government can choose to make Bitcoin legal tender, create a better trust environment, gain the benefits of positive decentralization in the economy, and bring more wisdom to economic development through the DAO decentralized autonomous organization And efficient, more fair in the pursuit of profit.

 

Why is POWER DAO the infrastructure of social change?

 

Since its inception, POWER DAO has been aiming at the actual needs of the global algorithmic power market and credit guarantee, and has carried out cross-border and cross-industry credit value exchange with its efficient, reliable, low-cost and perfect services, including the use of digital currency as the national legal currency. Payment instrument. POWER MINER allows each unit of algorithmic power to provide algorithmic power pledges to vote for Bitcoin, Ethereum and other emerging public chain infrastructures independently, flexibly and unrestrictedly, and obtain incentive tokens. competitive advantage. It aims to realize the bridge between the physical world and the byte world - "Algorithmic power", thereby redefining the credit and value of algorithmic power, and using "Algorithmic power" as a value credit medium to establish a decentralized, transparent and Secure algorithmic power autonomy protocol. The next-generation infrastructure that supports the Metaverse with higher performance, lower energy consumption, more decentralization, and more security is elected in a flexible way by means of algorithmic power pledge voting.

collect
0
avatar
Borderless
guide
Zupyak is the world’s largest content marketing community, with over 400 000 members and 3 million articles. Explore and get your content discovered.
Read more