Would Their Be A Need For Countries In A World Without National Currencies

in LeoFinance10 days ago

Hey Jessitizens of the world

As we move closer to a more interconnected gloab economy where jobs are conducted online more capital is being exchanged online and collaborative work and talent mix together. Work can now be done in digital spaces that don't require the need for government regulation, visas, permits of any kind. People are free to conduct business and exchange value as they see fit.

This is not the case for everyone but a large volume of capital continues to flow into this as it becomes a more significant part of the economy. Once of the archaic systems we have holding back unlocking the full capacity of boarderless transactions is national currency.

As a South African, It's harder for me to secure services or goods from developed nations where my currency has no hope of standing up to there's. Then going to other developing nations I have to go and compete for those goods and services with others who can use Dollars, Pounds or Euros.

No escape for developing currencies

This gives certain countries an escape velocity when it comes to securing the best resources for the lowest price due to their better negotiating with the help of relatively stronger purchasing power.

In a world of national currencies no matter how good a business owner you are you are hamstrung by the policies of your government. A South African business, for example can only maximise its gains so far before the ceiling provided by the Rands constant debasement inhibits their ability to trade on an international stage.


Forex forrest

The forex market has servied its purpose until now, for me to secure a developer from India, a copywriter from England, a social media manager from Hong Kong will all cost me various rates. Going into the international labour market means not only looking at what the person is charging but what you will be paying them in.

The indian I need to pay in rupees, but I first need to secure dollars to exchange for Rupees, losing on the trade. It's vice versa for the Indian wanting my services. We don't carry on hand each others currency so we're at the mercy of the forex market on any given day.

An easier way around this is to agree all fees in USD and then allowing the person to exchange it if and when they need it. The issue with this is we all global up the US's inflation giving them an unfair advantage in the forex and trade markets.

There is so much arbitrage with around 7 trillion in currency traded in the forex market every day and that slippage is paying traders millions if not billions to maintain the markets effectiveness and effectively extract capital and tax productive trade as a market maker or taker.

A set unit of account

If we had a set unit of account it would make valuing things a lot easier. I could say okay a size of land in Finland cost x BTC and then value it versus a same size land in another country and then start to use that as base for how we value any purchase.

Instead of having to complex calculations, price in political risk and government policy, a self-sovreing currency allows you to price goods and services based more on their demand than the complex layer that is fiat currency.

It allows us better price discovery, allow capital to flow into places where value can be found and create more efficient markets.

If this becomes the case, what would be the need for local currency and if we do get rid of local currency, what is the need for countries anymore?

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

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WHere is my badge?

Well my post only displays on LEO I can’t see it on the other front ends for some reason maybe that’s the reason you are first today

Here is your badge

I’m also loving Leo’s new flat curation Everytime I upvote a comment I get 0.2 LEO 😬

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I was first - because I am so fast ! Nothing else.

Do you get that 0,2 LEO for every upvote at a post with tag LEOFINANCE or do you need to make that upvote from LEO frontend? I think that is extremly good - maybe time for me to use some other frontend than peak.

With my full upvote I get 0.650 LEO back and it doesn’t matter what front end you use! I jusy use leo because it’s easier to find leo tagged posts to curate

Are you ready for the SPT land sale have you and minishark been saving your DEC?

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First - I need to try this. is is #leofinance or #leo you talking about. Just have to see what a vote from a small and tiny sweed will give.

DEC - I will not buy land in presale. We have our DEC/ETH pool and own 0,4 % of the pool so if I understand it right I will get 4-6 Land pieces and some tickets to the lottery. The rate is extremly low so not a good pool to invest in to get good rate - but I am in for the land. (The cel/eth rate is by the way awesome)

Have you follow the value of DEC? As you said it would be not surprising if the value goes up now when everyone need to land.

#leofinance you can check your vote value on their front end, and check out HIVE stats and see what your curation has changed to now that the flat rewards is in place.

I hope to get some land and lottery tickets and if my guild is keen on buying some maybe I'll go in with a group, if not I'll pick up a few plots in the presale and see if I can rent or resell them

Its only going to keep going up and also rewards in game will become harder with all the competition for the daily DEC pool

thanks !BEER
So much to learn...
Just now I trying to understand the pancakes, syrup and other good stuff to eat at Binance Swap Thing.

Hey @chekohler, here is a little bit of BEER from @minimining for you. Enjoy it!

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Hey @minimining, here is a little bit of BEER from @chekohler for you. Enjoy it!

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I would ask the same question about governments in general.

As you pointed out, as the world goes more digital, there is less of a need for the physical governments that are based upon location. We are heading towards a world of networks, which will have their own governance.

Decentralized currencies offer a lot of potential, especially for those countries where the government is massively overreaching and killing businesses.

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Thats what I was leaning towards too, like wouldn’t all this private money and on chain governance elimate a lot of what they try to regulate?

Seems it would render many of what they do obsolete which is great for efficiency but I doubt they will let go of power without a fight

Thats what I was leaning towards too, like wouldn’t all this private money and on chain governance elimate a lot of what they try to regulate?

I would think so. In fact, a lot of that stuff would fall under governance models since the networks will have them which will dictate how things are handled.

Obviously, this is not in the regulators and g-people's interest since it makes most of them obsolete so we can expect a continuing of the fight we have witnessed.

We just need to keep operating outside the system and building an alternative to what they offer. By the time the masses adopt it, it will be too late for the centralized entities including governments.

There are many who believe the nation-state will be passe in as little as 50 years.

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Maybe the local currencies can prove its needs today. And even for the next 5-10 years. But I have hard time trying to imagine local currencies to exist in year 2070. 😃

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I would agree with that outlook I think fiat is more resilient than many of us crypto peeps give it credit for it’s so engrained in peoples minds and society it will be hard to move on from that’s for sure but say a country like Zimbabwe or Nigeria who are really at the end of the fiat road it starts to make more sense for them even here in South Africa as the rand continues to lose value faster year after year

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Having issues with viewing posts on leofinance.io today, I think for Nigeria we can make do with doing away with the naira, it's totally a disgrace and has depreciated even worse in 10 years

I think a lot of African currencies can be tossed in the bin like the Kenyan and Tanzanian Shilling too, it's practically useless, Egyptian pound too. Having used Rands there and seeing how far our terrible currency goes there I can only imagine how those currencies have been misused and we'll surely get there too.

I have no faith in any African government but that doesn't make me any less African, I'll continue to opt-out of this madness each month

I have no faith in any African government too, the lack of transparency and the lack of trust and the mismanagement of fund, it's too high and the system is just designed to go unchecked

Until we take their only source of power away, what can we do? Countries quickly become prisons when governments feel threatened, I fear that many countries won't make this a peaceful transition, especially in Africa, we love having dictators run our countries for some reason

Great observation.
I think we still live in a kind of barter society.

We do, we just thought that fiat can streamline the bartering but in doing so we continued to make it overly complex. I think crypto as complex as it is now at least the aim and intention of becoming simple to use over time

I think that the currency of each country will always be in force, the governments have too much history and a lot of investment, so they cannot afford to disappear, the other currencies and even tokens can have an important role but the governments have them pending, that is it cannot be ignored.
Happy Sunday

I think so too, it will be there but for how long can they force people to remain in their systems? the harder they make it to leave the more people will revolt and reduce their base of productive users and tax base. It's going to interesting to see how they deal with the growing strength of private money