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.
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.
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.
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?
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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