Bitcoin Forum

Capital controls are measures implemented by governments to regulate flows from capital markets into and out of the country's capital account. One type of Capital control is the exchange controls that prevent or limit the buying and selling of a national currency.

The government will for instance limit the amount of money that a private citizen is allowed to move from that country.

In the bigger picture more and more countries are looking at economic globalization,where restrictions like this limit the possibility of such lofty ideals. Economic globalization refers to the free movement of goods, capital services, technology and information.

I think Bitcoin is the technology that would facilitate the evolution from a country with strict capital controls, to a world where capital are given wings to fly from border to border, without restrictions.

This brings us to the next goal,where globalization increase income and economic growth in developing countries. When there are no restrictions on capital,people can work in any country or operate their business in 3rd world countries without having to worry about capital controls and restrictions.

Governments use Capital controls as a tools to protect jobs in their country. Companies, sometimes having to pay ridiculous wages to people for work that could have been done at a friction of that cost in a third world country.

Bitcoin not only open the door to global markets,it also create jobs for people in a global context. Why do you have to pay high wages, if there are no barriers that would stop you from hiring cheaper labour in other countries and paying them with a currency that can cross borders without restrictions?

We need to create a level playing field fro everyone to compete in a highly competitive global context and to reduce wages for over-priced jobs. Working from home,will now be something very different than usual online jobs,because you will be working in another country for a major company in another country or that company will relocate you for cheaper labour.

Do you think the elimination for Capital controls with the help of borderless technologies,will bring us closer to Economic globalization?

What a interesting angle to look at this.  ;) Yes, I think Bitcoin is forcing the issue for these countries to look at currencies in a global context. They will have to find other ways to regulate Capital controls to adapt to borderless technologies, like you called it.

They cannot stop this from happening, so they will just have to adapt. This is another example of the disruptive power of this technology. Even governments have to change to adapt to the new challenges that Bitcoin bring to the table.

We will just have to hope that the regulations that evolve with this borderless technology would not restrict it even more. The push back should not be negative.  ???

Wonderful. What the government does is create a rule and force the players to follow the rules. There will be no power to control bitcoin as bitcoins become more common and dispersed. There are more and more bitcoin holders. I realize that the G20 has made the right decision to think that bitcoins do not affect the global economy. Bitcoin is just a payment solution and the value of Bitcoin is still very small compared to Forex, securities and real estate.

wow, i have never ever thought about this but this might be one of issue we are all dealing with. Yes of course Im totally sure that Bitcoin has always been a part of economy nowadays, not major part but it's there. I understand what you were trying to demonstrate but Im interested more. Do you have more? Thanks huge!

Capital control is somehow necessary for a country especially third world countries. If a 3rd world countries would allow their capital to go out of their borders then they will have a hard time catching with the first world countries.  Borderless economy is only applicable to a one world government but this cannot be applied to a multitude of countries.