National currencies are the only kind of currency being used as units of account, each in its own country, due to political mandates and lack of legal options. However, in the medium of exchange side, different goods can often be used as the transacting parties see fit based on their own needs.
This is already playing out in many countries in the world. Kenya, Nigeria, and other African countries are becoming hotbeds for Bitcoin usage as a store of value and a medium of exchange as citizens face currency debasement, monetary colonialism, and scarce access to the banking system. Similarly, in Central America, El Salvador recently adopted bitcoin as a legal tender after the Bitcoin law was enacted last week. Where the majority of the population doesn’t have a bank account, real change is happening with Bitcoin.
Central Banks Fear Bitcoin
Lagarde’s comments on Bitcoin and “cryptos” bring to light the fear of those who currently hold the monopoly of money creation. Their actions of moving towards central bank digital currencies (CBDC) further showcase an attempt to tell the public, “hey, we can be digital too!” But the people won’t be fooled.
Satoshi Nakamoto created parallel money that doesn’t require permission from a central authority to be used. Bitcoin allows people of any background, nationality, religion, and race to access sound money.
Beyond empowering those marginalized by the permissioned monetary system pushed forward by the ECB, the Federal Reserve, and the International Monetary Fund, Bitcoin also provides everyone with an opportunity to be their own masters — something a digital euro or digital dollar will never be able to accomplish.
Bitcoin was created as a direct response to the bailouts given to the banks that caused the subprime crisis in 2008. Big corporations can afford to be reckless because there’s always a friendly central bank to rescue them and pardon their debt while the average citizen pays the price.
But apparently, only now have those central banks noticed the reason why Satoshi Nakamoto and the cypherpunks before him brought Bitcoin to the world, and they can’t help but fear the end of a centuries-long monopoly. They aren’t at ease with the idea of seeing the end of a colossal power that empowers banks, corporations, and influential individuals at the expense of regular citizens who work hard to pay the very taxes that sustain such a system. But the people say no more; because now, they have Bitcoin.
