Crypto topples Central Banks like Dominos
They fall like Dominoes' once that initial spark takes hold...Sure this is the dream of many around the globe, it is NOT yet reality. But it could happen!
1st El Salvador - he must have a big brass set!
Will the 2nd Country to adopt BTC as legal Tender be Paraguay or will it be Panama? Or will it come from the other side of the globe like Hong Kong or Malaysia?
What is Paraguay?
Its a South American country with 7.15M People, a GDP 31.84Billion, their main import/export partner is Brazil!
Recall their action back in '19 Paraguay is preparing to regulate the cryptocurrency market. They saw the movement back then which leads me to believe Paraguay will be closer to using BTC as legal tender than Panama. They have already backed El Salvador President in his pivot to BTC as Legal tender!
What is Panama?
Its a Central American country and their population is estimated to be 4,381,579 in '21 while their GDP is expected to come in at $121.749 Billion. Which is considerably larger than Paraguay in regard to GDP. They have already backed El Salvador President in his pivot to BTC as Legal tender! Top trading partners were USA, Colombia, that is for Imports and Exports.
What impact does this have to trading partners? Brazil and USA to pick two large partners. Currently, the Global Reserve Currency is still the US $ so trade is supposed to be settled in $. However, there is nothing stopping the age old Barter from taking place. Sure its hard to barter for Electronics and Military gear so its easy to see $ remain for several types of transactions and Crypto as settlement for everything else. Net Result, Central Banks would play a diminished role. The unintended consequences will have a broad impact regardless.
Let's postulate another angle What IF a Central Bank actually released BTC under the guise of having the population test it for bugs and adoption? Then come in at a future date and declare Cash dead and a deadline for cash exchange and thus full adoption! How would you handle this possibility? Or they come out with "Coercive Power" To CBDC on Population. Not sure there is an easy answer here. Digital money is full control!
Or yet another, where Central Banks caught flat footed with the decentralized money option and are now trying to legislate control? What would it take for Crypto adoption to topple a Central Bank? How long before the second and third fell? The calamity would make the global COVID shutdowns look like a dry run!
Sure the Central Banks can deploy and implement road blocks and slow down adoption but at this point, I think the horses are out of the barn and no storm is on the horizon!
Know they will fight to help prop up their own - They will help each other weather the 'storm', direct help might come from the IMF or from from undeclared Central Bank to Central Bank help. Their ability to hang on will far exceed your expectations, then all of sudden the first domino will fall
Counter thought - Central Banks could start to purchase and hold BTC too...hmm
Summary - Not way to be certain at this point did a Central Bank create BTC and release it for your testing? Or how many countries would it take to adopt BTC as legal tender to topple a Central Bank of any size? Assuming that smaller Central banks would feel more pressure quickly vs a larger Central Bank.
