Brazil and Argentina are considering a common trading currency, but that would just perpetuate the economic problems that Bitcoin could solve.
This is an opinion editorial by Jack Williams, an undergraduate business administration student and Bitcoin HODLer.
Brazil and Argentina have faced off against each other on numerous fronts, namely World Cup Qualifiers and Copa América epics. So, as an avid soccer (‘Murica) fan, I found this Mises.org article by Marcos Falcone a little strange at first because it suggested that these two rivals might come together to establish a common currency. But, considering the two nation’s standings in the global economy, the idea makes sense.
Argentina has gradually shifted more into economic uncertainty as its currency inflates year over year and often month over month. Brazil faces political and economic uncertainty after recent troubling events surrounding the reelection of President Lula da Silva, who faced corruption charges prior to his campaign in 2022. According to Falcone, President Lula and Argentina’s economic minister, Sergio Massa, have discussed a possible trading currency between the two nations.
Without a doubt, if Brazil and Argentina ever come to such an agreement, the eventual currency is going to strip more wealth from the hands of the Argentine and Brazilian people. Despite whatever sweet nothings Lula da Silva and Argentina President Alberto Fernández would whisper into the ears of their respective populaces, the only victory achieved would likely be on their cronies’ front. Falcone shares this concern in his article as well, providing a stellar account of both Argentina and Brazil’s economic histories along with a strong case for why their speculated fiat solution is anything but a legitimate reform.
Argentina And Brazil Shouldn’t Miss This Opportunity For Bitcoin
But Brazil and Argentina have an exceedingly-rare opportunity to change the dynamics of international economic cooperation and diplomacy for the better by adopting Bitcoin. As esteemed anarchist author and podcaster Michael Malice has said, “Every country is in a state of anarchy towards every other country.” To extrapolate this, Brazil and Argentina’s best shot at stabilizing their trade and boosting their economy is through Bitcoin.
The trade stabilization effects come from a shared, objective, cardinal valuation on goods shipped between the two countries that is tied to a digital currency that is not controlled by either Brazil or Argentina’s governments should not be underestimated. Officials from both sides could sleep soundly knowing that their own countries are not being screwed over by their neighbor and that their citizens are benefiting economically and simultaneously with those of their rival nation. Knowing what politicians actually get wet dreams about, I understand this solution is unlikely. Ultimately, we don’t need those politicians to implement this international means of trade. We can run nodes without the permission of Lula da Silva, Fernández or any other parasitic politician.
But formal Bitcoin adoption is not impossible. Just look at El Salvador. All of the work that has to be done on the political front is the granting of some formal permission to use Bitcoin and possibly some encouragement through light propaganda. The rest of the work will be done through the miners, node runners and Bitcoin enthusiasts in the two countries and around the world.
The People Are Ready For Bitcoin
And the political groundwork may have already started in both countries.
Conflicting accounts coming out of Brazil, including a statement from a federal deputy, have suggested that bitcoin has the potential to become legal tender. From the Argentinian standpoint, one of the upcoming presidential hopefuls is the passionate, boisterous, Austrian-disciplined economist Javier Milei, the current federal deputy of Buenos Aires. He is credited with saying that Bitcoin is a “natural reaction” to the “central bank scam.” The more I listen to him, the more hopeful I become. Bitcoin has the possibility to become a massive economic and political victory for the struggling South American nations and their populations.
What must be stated is that the people of Brazil and Argentina are in search of a better option than what is being presented and propagated to them. The people are either striving for a better means of economic opportunity or they are striving for a government handout, as is the case with many other nations. As respective Bitcoin miners, node runners and scholars, we must step up and portray the positive effects of the best cryptocurrency on the planet to the people who are desperate to grasp any message of hope.
It is the individuals who determine what is valuable in society, and the communication of knowledge and ideas across borders has never been easier. Make no mistake, the idea that we possess and the conviction we carry is bulletproof to any regime that threatens to conquer our physical planes. One must understand that regimes cannot rule our minds unless we let them in. As Victor Hugo wrote,“No army can stop an idea whose time has come.”
This is a guest post by Jack Williams. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.