0 sats \ 2 replies \ @TheBTCManual 2 Mar 2023 \ on: The CBDC's Are Coming! - The Looking Glass Education bitcoin
I am wondering if CBDCs do get rolled out it's likely only going to be really effective in countries that are already off cash, say 20% or below and even then it's pushing it, because how many times can you turn over a unit of currency? plenty of times.
But if it is rolled out, maybe it forces people to leave to countries that can't implement it, if they're telling you to spend your money, getting certain rates and other issues, then it might make a 3rd world currency look more attractive because the cash base protects from it being CBDC'ifed.
Would we see a migration into the global South to escape CBDCS?
I doubt we will see a migration to the south based on this one factor alone because currencies in the global south will likely be the first to collapse as the petrodollar system gets destroyed, which will create all kinds of economic chaos like we are seeing in Lebanon. What I suspect is that people will move to places where btc will be accepted like El Salvador, as those will be the only hubs in which CBDC’s can be avoided, or they will remain where they are and create an underground btc based economy
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If a currency fails in a majority cash economy, you have two options, move to the US dollar or open up to bitcoin and as the currency fails, so does assets priced in that currency fall in relative terms so homes, businesses and commodities in those areas become dirt cheap
I am not saying its a mass migration, but people who do the math, and have a appetite for "risk" would make the move
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