Coming from a report from a computer scientist and cryptopher that goes by the name of Nick Szabo thinks that cryptocurrencies will be used more frequently in struggling economics. Cryptocurrencies maybe supplemented through sanctions for gold in the future. There are a lot of countries like the US , Cuba, North Korea, Iran Zimbabwe,Venezuela, Syria Russia, Somalia, Sudan including Yemen.
The country of Venezuela has been one of the most prominent in order to adopt cryptocurrencies as a solution in its failing economy. Together with Zimbabwe and Iran that have turned to Central Banks issuing cryptocurrencies in order to achieve a better economic sanction.
Central Banks in Zimbabwe have imported more than 400 million last year in order to attempt to ease the cash shortage of the country. Some citizens have to travel to bordering towns in order to access cash from international banks. The country has shifted from a total ban on cryptocurrencies to seeing it as a solution to its economical crisis.
Szabo thinks that golds historical vulnerabilities will be a reason for promoting cryptocurrencies as a global reserve, in which he stated that:
“The other problem with gold reserves is that it is physically vulnerable. When the Nazis conquered countries in Europe, the first place they went to was a central bank’s gold reserves.”
The head of Israel’s National Economic Council gave a speech at the same conference. Avi Simhon, made a comment that Bitcoin Technology was inefficient and would become obsolete. Which Szabo later refuted.
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