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I believe we deserve a detailed elucidation of these aggravating concerns of fiat trading versus sound money. Solutions to world trade problems won’t suffice if engaging in transnational commerce, promoting social progress, multilateralism, influencing bilateral exposure, and enabling bottom-up prosperity isn’t of utmost importance to human existence. The liberty to implement and foster free, fast, and unbiased trades on an individual, community, province, and nation-state capacity in a seamless approach, irrespective of the entities involved, will be the first step towards achieving a global, friendly, effective, and competitive trading mechanism.
We have to bear in mind that the liberating innovation capable of solving and breaking world trade barriers won’t be anything short of a solution enabling instant & transparent cross-border transactions, fueling being free from oppressive restrictions imposed by authorities on people’s way of life, behavior, and economic prowess within the world marketplace. Ease around building long-lasting importing and exporting rails is better achieved by materializing free and fully decentralized trading technologies and tools against protectionism. An archaic and centralized trade policy that has been the order of the day, mainly known for hurting the people it’s intended to protect by slowing down economic growth and increasing inflation on a global scale—an issue evident during the post-Covid, pre-Russia-Ukraine conflict, and now.
The traction displayed in the international trading system has accumulated over decades, reflecting on different world unions’ actions, policies, and body language. Many people are concerned that not everyone is playing by the agreed multilateral rules; high levels of state support and protection remain in crucial sectors, while new multilateral rule-making is not keeping pace with today’s business realities. These are but a few problems being faced in today’s economy.
The question before us is, “how do we address and solve these trade barriers created, planned, organized & backed by human errors masquerading as governing rules making the economic revolution repressive ?” We actively need to reclassify economies and enable the integration of a monetary structure free of flaws and human incompetence. There’s no precise best time for positive transmogrification towards globalizing trade and transaction techniques other than now. They are zooming into the money evolution.
Emphasizing what money was, what money is, and what money should be is imperative, as it’s the pillar stone upholding every trading activity. The more impeccable money becomes, the more seamless it is to achieve a sustainable economy accompanied by an unerring trading mechanism. Money has taken many structures throughout human history. Gold & cowrie shells served as money in the 14th century but couldn’t meet up with all the characteristics and functions of what money should be. Gold & cowrie shells were scarce, but the supply capitalization was not limited. At the same time, the ease of use feature wasn’t achievable because of the weight of these commodities (gold & cowries shells) in exchange for goods & services in different forms. More gold and cowrie shells are being discovered, which in turn leads to a level of market saturation.
To correct and solve the issues of these previous commodities known as money. Money was developed and converted into a medium of exchange such as gold coins, Fiat (dollar notes), bank accounts value, and credit cards. Sounds exciting and innovative, right? Feeding your curiosity, this improvement has been able to eliminate some of the previous problems, such as “ease of use,” but hasn’t addressed the unlimited supply problem. The runaway and consistent production of money(Fiat) remains persistent as everyone hangs in the air of trust with third parties called banks; not surprisingly, banks remain subject to federal regulations, harnessing the feds and central finance authority the autonomy of printing more money at will. Pathetically, this new form of money is a gateway to new trading problems. Some of such are “non-uniformity of money,” “long settlement procedures,” & “strict regulations amidst under-collateralization in some jurisdictions.”
Despite the acclaimed optimization of money for easy use, some of the approaches to addressing that setback necessitated the existing monetary body known as “Society for Worldwide Interbank Financial Telecommunication” (SWIFT). Swift addresses a quarter of this problem by facilitating cross-border money transfers in a way that can be classified as a quick & structured messaging manner but not precisely swift or instant as to what transactions should be.
That incomplete solution alone indicts the process by which payment of goods moves across borders amidst numerous difficulties in trades or transactional measures with more consideration on keeping in line with the centralized economic regulations governing each jurisdiction. The balance refusal of the World Economic Forum (WEF) to enable the globalization of money is masterminded by greed. I agree to disagree; it’s due to her expert’s inability to understand the concept of decentralizing money and democratizing trade. WEF refusal is an economic concept guided with full focus to sustain the feds’ power-drunk addictions–by spicing trade and investments with local currency barriers to slow the flow of products and services between nations.
Some of the consequences of a fragmented global economy and the central bank’s autonomy towards consistent & increasing supply of local currencies are indelible and evident in our society with
- Declines in wages and currencies purchasing power in both high- and low-income economies.
- Facing trade-offs between the risk of a debt crisis and securing food and fuel amidst countries with developing economies.
- Worst food insecurity over time– especially in the Middle East, North Africa, Sub-Saharan Africa, and South Asia.
- The highest inflation rates in history affect numerous countries, not excluding the world trade powers in each continent.
Permit me to ask, “Can the root cause of these challenges be tackled to revolutionize the contexts of money for fostering global trade without blemish”? Quick response, yes, it can; let money be money, and all trade problems will become obsolete. To solve the trade problems attached to all these previous incompetent currencies, Satoshi Nakamoto created an innovation called Bitcoin to address the flaws of present-day money. Many features of the Bitcoin protocol include limited supply, immutability, transparency, ease of use, censorship resistance, divisibility, fungibility, and portability. Its juicy and most efficient part is its ability to get rid of trust through a decentralized peer-to-peer trading mechanism backed by mathematical computations rather than physical properties like gold or cowries shells. The characteristics of sound money are durability, portability, divisibility, uniformity, limited supply, and acceptability. Bitcoin possesses all. I noticed “Satoshi knew better” when he created Bitcoin in 2009 as sound money in response to the 2008 financial crisis. Trades should be carried out with money, which the corrupt can’t abuse or influence. Unapologetically, governments should make global and local trades with money that has its purchasing power determined by markets, independent of governments and political parties. He (Satoshi Nakamoto) said, “the root problem with conventional currency is all the trust required to make it work, the central bank must be trusted not to debase the currency, but the history of currencies is full of breaches of that trust.” The ball is now in every individual’s court to determine and accept this innovation as a solution to the long-existing trade problems.
Interviewing Nikolai Tjongarero, also known as “Okin” who is a Business mogul & Bitcoin advocate in Namibia. In his response to the question, “Despite the central bank of Namibia’s public declaration of Bitcoin as an acceptable payment option, does the government implement policies to enable it as an official currency for importing and exporting purposes ?” Affirmatively he said, “No.” After a long brainstorming session, I concluded that policymakers in countries that have not yet moved away from import-substitution policies and direct governmental controls should implement structural adjustments rapidly to restore their growth.
Fostering quick trades and resuming creditworthiness by amending policy conforming with the new normal towards achieving open & accessible trades by utilizing and adopting global currency as its medium of exchange, a unit of account, and transfer of value. Bitcoin is the international money for an interconnected world. Utilizing and adopting money that doesn’t care about religion, country, race, or creed is the first step towards solving trade bias. Interestingly, the only method towards the madness of this content is to understand, digest and implement the message rather than tackling the messenger.
This is a guest post by Heritage Falodun You can follow him on Twitter @Herrytheeagle.Opinions expressed are entirely their own and do not necessarily reflect those of Satoshi’s Journal or Satoshi’s Entertainment Company.