Hi HODLers, Hiveans and Lions,
According to the IMF, many users in these regions turn to Bitcoin to move capital across borders more freely.
It develops that cross-border flows seem correlated with incentives to avoid capital flow restrictions, indicating that residents of countries like Argentina and Venezuela.
which face hyperinflation and strict financial controls, are finding value in Bitcoin as a necessary financial tool.
The report looks at both on-chain (recorded on the blockchain) and off-chain Bitcoin transactions to understand how Bitcoin is being used across borders.
It does mention and finds that on-chain transactions which offer more security, usually involve larger amounts of money compared to off-chain transactions. This could also be due to the fees which can be higher for this type of transaction.
The report also highlights some risks
Of course, we couldn't close this report without mentioning some of the risks that the IMF and most of the developped economies see with cryptocurrencies and Bitoinc.
- Anonymity,
- Lack of oversight (that's the point Sherlock...) provided by cryptocurrencies can complicate efforts to monitor and control financial transactions to prevent illicit activities such as money laundering.
As I usually say to my 1st world friends. You do not see how amazing is #bitcoin because you do not live in a state where the government can take everything from you, prevent you to take it to leave your own country or a place where inflation (therefore your savings) is losing 20%+/year!
Let's see what happens next and let's hope $HIVE could be used in the future for some of thes euse cases? Maybe through $HBD?