When I speek informaly with some governement official in Ivory coast, they show a lot of concern about the legal tendent of crypto-monney in general and I have a hard time convince them that removing power from the central banks is good for the nation.
How would you defend the adoption of a crypto-monney (Cardano for exemple) at a state level ?
What consequences do you see on the state finance, if adoption gets big ?
How would you reassure bankers that an automated system can do better than a central bank to pilot the monetary policy of an economical zone with 200+ millions people ?
We also were talking about the current financial structure here on Aruba. We are working on a roadmap to create interest in the blockchain through education that will get adoption going. If enough people are interested in cryptocurrency hopefully businesses will start moving towards blockchain solutions (tourism being are economic pillar) and that will tip certain financial institutions towards the future we know is coming. It’s going to be hard work and a longterm commitment but worth it. So in short, focus on the people, get them to hold and start using Cardano, teach them how to use it safely, the rest will follow. I believe that most banks will have to re-invent themselves eventually. My 25 cents
Ok, convincing the people will certainly help but it would be good if the official were also sending green light for the mass adoption of Cardano. Something like a central ban is not helping the people to adopt a crypto-monney.
In Aruba, I guess that you can easily have access to the authorities (governor of the island) but do you have an independent monetary policy or do you depend on the European Central Bank ?
I have to agree with you on that one. We have our own central bank (https://www.cbaruba.org/) because we also have our own currency AWG. Our situation is unique because even though we part of the Netherlands and but we have a central bank. Most of our banks are owned actually by American & Canadian banks. That is why DEFI is so attractive for people like us I guess. We don’t have a ban here and that is why we will not approach our CBA just yet (Leave sleeping dogs ;). Hope someone else in the forum can give further feedback on your question!
I find it really interesting that you have your own central bank because your island is relatively small. It’s size helps to understand the impact of the monetary policy of your bank on your economy and how the adoption of crypto could impact their efficiency.
I guess you use both USD and AWG but the latter is mandatory for businesses, taxes and civil servant salaries.
When you say that DEFI is attractive for you, is it because most of you banks are American and Canadian meaning that they can devaluate AWG as they please for their benefits ?
That is true… We are very small but we used to have about 1 million tourists a year (mostly USA). DEFI is attractive because we have tried to create different eCommerce software here and the banks simply are unreasonable to let developers create cheapers solutions for merchants. eMerchant services and gateways cost WAY to much and they are not open to work together.
Here in West Africa many are unbanked and therefor not very concerned with classical eCommerce software (using visa or bank transfer). Many use a mobile or smartphone account linked to a major telecommunication company. Unfortunately they, too, take advantage of their monopole to charge non negligible fee on small transactions. There’s a fixed fee of about 50 USD cents which is too much if the transport is for example 1 USD. So DEFI would be handy too.
The only things is to fight for it’s acceptation taking in account that it will take some bread from big private players in the country. So we need to be prepared for pressure to ban crypto at nation wide and find arguments to counter it right now. Maybe the effort made in India would help… Any one has info on their arguments to fight their case in India.
I hear also that Nigeria senators did not agree with the central bank ban on crypto so probably approaching political representatives could help too.
You do not need to convince the government and banks; only educate more people about it. Time will come when governments and banks will realize they have to follow the masses; then they will be looking for you to educate them.
I find that very optimistic and not really addressing the problem. Unfortunately a thing does not only need to be good for the people to succeed. When you say you just need to educate the people, what if other people educate them an opposite way to yours?
You say go decentralize, and the other say no go centralized. Why do you think your point of view will prevail ? Because you are convinced that’s it is the best ? Then every one on earth should be driving on the left (not like the British, joke)
Yesterday I spoke with one of our parliament members so and I was advised to prepare a presentation for the financial/economic advisor of parliament itself. Fortunately the highest legal authority is Parliament here on Aruba that can influence/control/override our Central Bank in the right conditions. That’s how we are approaching it and we are also in the process of onboarding the right people for this job. I was also recommended to get a legal advisor on the team to help us in this process.
Just wanted to share that, it does not adres your question but we believe it’s the right beginning for us here.
That’s really great. Please do share your report I could get inspiration from it and I’m sure I can make it reach some ministers here in Ivory coast.
Ada may be a convinient means to transact outside of the borders of any country but using it as a legal tender opens a lot of issues. I doubt that could be advisable also given how the world works.
But a country issuing its own cryptocurrency based on Cardano as a token or any other Blockchain is not only possible but inevitable.
If Ivory Coast or any African country doesn’t do that, the countries will lose a lot of money because economic activity always takes the shortest and most convenient route possible.
A CBDC allows the government to have control over the flow of money hence the economy, while making fast transactions possible.
In fact not only on a national level but each region could have its own local currency to encourage economic activity within regions and discourage capital flight.
Of cource digital currencies also make corruption a bit difficult if not impossible. And in Africa that would not be very popular with many of the officails.
What you say resonate well with what the government wants here and I like your pragmatic approach, taking in account “how the world works”. I have to agree with it. Also, I am convinced that some of the highest officials want less corruption even in Africa
Therefore one way to convince the governments and central bankers would be:
to show them how they can keep control of a CBDC. In that sense a careful study and report on e-krona (sweeden’s CBDC) would probably help convince them to adopt a similar project.
make transactions more efficient (by speed & energy consumption)
facilitate fine grained regional economical governance
fight corruption
Note : I guessed that CBDC means Central Bank Decentralized Currency, is that correct ?
Correct about CBDC.
I am afraid African countries can not wait for Sweden or any other European country to adopt before they do. The reason is that, for example, Sweden is already a cashless society and the improvement e-korona will make on the existing system for the purpose of transaction or any of the benefits that digital currency can bring is very small. Therefore they can afford to wait for decades.
African countries do not have that lexury and they also need to shade this for ever waiting for others and catching-up mentality if they want to realize their true potential. Africa must do what is needed to solve its problems, not wait for solutions from Europe which doesn’t have the same set of problems as Africa.
Africa can copy technology from Europe but when and how it can be used must be worked out by Africans.
I partially agree with you here. I cannot see been patient as bad. Against all odd, and taking life from the good side, I often think that those cultures taking time, those that don’t consider been late too important, are in fact the richest of all because, thinking deeply… what is more important than time… in a life time ?
That been said, I agree that we must not have a catching-up mentality, no one should. But again, thinking deeply, having a catching-up mentality would be thinking that we need to hurry to do something. That is not what I was advocating. I see nothing wrong in listening, watching, reflecting, walking a bit and sleeping some more before taking a decision.
Usually, great entrepreneurs would do a great job in that area; like the introduction of a new product in any given country or region. Lots of new and innovative ideas are needed.
To be honest, I think Cardano is not mature enough yet to be adopted by governments for key applications. There is still a lot problems to solve, a lot of incoming features and social engineering with an impact that still need to be assessed. POS is kind of new. The governance is still a work in progress.
Today we have big exchanges concentrating more and more of people’s stake, and thus voting power.
A lot will change with the incoming smart contracts, Defi, the Voltaire phase, people’s education…
So it is very good for gouvernements to think about it, or do experimentations. Cardano has all it needs to be the greatest platform of all. But imo, the system is not stable enough yet to run people’s life on it.
From a government point of view, I totally understand the wait and see attitude.
I started a discussion about a current problem, showing that we are not there yet. It is under another thread for those interested:
