The Danger of Local Economy.

[Agbe]

According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..

Bitcoin is taking over the internet for online transaction, therefore, most of  the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

[Darker45]

Do you have any more reliable information that would somehow support this claim? Other than this Facebook page, is this information somehow corroborated by more credible sources?

Anyway, it is not illogical if the IMF perceives that cryptocurrencies, I mean Bitcoin, could indeed displace local currencies of developing countries in the future. For one, these local currencies are weak. But such displacement does not mean the country is consequently placed in a disadvantageous position. It could be otherwise. As a matter of fact, it is the developing country itself that would fully embrace the use of Bitcoin alongside fiat even if that could mean the demise of their fiat.

[traderethereum]

I think it is not, but I do not know in the future because the government still does not like bitcoin and will make it slowly be adopted.
It depends on how the new generation of youths react to bitcoin because many of them are still not aware of the presence of bitcoin and do not try to find out more.
Although the local currency is weak, it still works for most people who use it for transactions.
But if bitcoin can grow and increase its popularity, it could make the local currency weak because people will start to move to bitcoin and use it for their investment and not just for making a transaction.

[Dave1]

Lol, on the contrary this article or blog just wanted to bring bad light to crypto itself.

I mean governments now have their own CBCD to counter this isn't it? So this argument is weak from the beginning and as I have said this is pure FUD. People are smart, if they see the both their local fiat and crypto has it's own advantages they why used both regardless if it is a developing country or not. And regardless of the IMF stance, we should understand where this guy is coming from. I mean they lend nations money, it's their business so they need to attack crypto as some point because they may think it is a threat for them specially from developing nations because that's where the bulk of their money is going.

[laredo7mm]

Lol, on the contrary this article or blog just wanted to bring bad light to crypto itself.

I mean governments now have their own CBCD to counter this isn't it? So this argument is weak from the beginning and as I have said this is pure FUD. People are smart, if they see the both their local fiat and crypto has it's own advantages they why used both regardless if it is a developing country or not. And regardless of the IMF stance, we should understand where this guy is coming from. I mean they lend nations money, it's their business so they need to attack crypto as some point because they may think it is a threat for them specially from developing nations because that's where the bulk of their money is going.

So that means there is a political and sentimental game is playing to prevent mass crypto adoption of crypto by these big players? Many big companies are involved with crypto and many are coming in. So this kind of fud will not a valid in the future. Youngs is aggressively coming in crypto so e-currency will be the main currency and paper cash will be removed. That means the world is leading towards a truly decentralized economy and that makes sense why IMF is worried about it.

[Zilon]

According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..

Bitcoin is taking over the internet for online transaction, therefore, most of  the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

We have seen Bitcoin on several count Bitcoin weakening the local currencies of many countries even after the introduction of e-currencies many still choose crypto over e-currencies both for transaction and reserve but crypto will never replace e-currencies because the government from the onset has not been in support of them and might not be even in the nearest future

[OddyseyGames]

Bitcoin probably will not be able to, but I believe that after years some states will introduce digital money, since this is a common money evolution.

[dothebeats]

We're seeing it in some poverty-stricken countries right now, and bitcoin has seen some increasing popularity and utility over these areas. In countries where their local currencies are massively devalued, bitcoin offers an avenue wherein they can still purchase goods and services and getting most out of their money.

Then again, it can only be used side-by-side and not replace fiat currencies. We are far from it, given how small the merchant infrastructure and network is for bitcoin and cryptocurrencies.

[batang_bitcoin]

because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions.

There's a conflict in what you've said. It's actually the opposite in developing countries if you look at the stats about them on how verse the people there are with cryptocurrencies, you'll see good stats and volume from within. And in these developing countries, it's not only the youths are into crypto but it's on different ages of the society.

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

No.
Bitcoin or crypto could even fuel the local economy which includes the local currency for that country if most people are contributing a lot to them through their earnings in cryptocurrencies.

[Hydrogen]

Can Bitcoin really weaken the Local Currencies in the Developing Nations?

I would contend bitcoin will make local currencies in developing nations stronger.

The way competition between AMD and intel forces both to develop stronger processors. Iron sharpens iron. Initially, locally currencies might weaken. The long term outlook however could see local currencies adjust to become more competitive and offer better terms to consumers.

Regulators and heads of local currency management can be happy that bitcoin might create incentive for them to do a better job serving the public benefit. Bitcoin is a win/win scenario for them as well.

[The Sceptical Chymist]

Do you have any more reliable information that would somehow support this claim? Other than this Facebook page, is this information somehow corroborated by more credible sources?

Yeah, I can't stand when a thread starts like this, with a claim that a pronouncement was made by someone and no reference links are provided.  It's hard to comment on something that I don't really know is true.

But let's assume the IMF said what it said for the purposes of my post.  I don't know how much developing countries and their citizenry value their currency, and I assume it depends very much on which country we're talking about.  If it was a country like Venezuela, then I'd say crypto might pose a threat to their fiat currency, but even during their hyperinflationary crisis I didn't hear tons of credible stories of how bitcoin or any of the altcoins were taking over; I think Venezuelans used the US dollar as a substitute currency.

And this just isn't true:

Bitcoin is taking over the internet for online transaction

Bitcoin has been around since 2009, and most people still don't own any--and pretty much everyone uses the internet.  So that should tell you with no ambiguity that bitcoin hasn't gained any dominance over traditional payment methods.  A lot of people shop on Amazon and related retailers online, and what do people have to pay with?  Their credit or debit cards, not bitcoin.  Bitcoin isn't even close to "taking over the internet for online transaction(s)".

[Hispo]

Do you have any more reliable information that would somehow support this claim? Other than this Facebook page, is this information somehow corroborated by more credible sources?

Yeah, I can't stand when a thread starts like this, with a claim that a pronouncement was made by someone and no reference links are provided.  It's hard to comment on something that I don't really know is true.

But let's assume the IMF said what it said for the purposes of my post.  I don't know how much developing countries and their citizenry value their currency, and I assume it depends very much on which country we're talking about.  If it was a country like Venezuela, then I'd say crypto might pose a threat to their fiat currency, but even during their hyperinflationary crisis I didn't hear tons of credible stories of how bitcoin or any of the altcoins were taking over; I think Venezuelans used the US dollar as a substitute currency.

And this just isn't true:

We have adopted USD as auxiliar currency, that is a fact and it is the reason we have been able to slow down the inflation here.

On the other hand, I must say that cryptocurrency, even though it has not taken over completely the economy of my country it has indeed gain a big amount of adoption, mainly because we have been mistreated by services like Paypal for years, and the fact it makes easier to conceal our savings from bad people or even send money anywhere.

Nowadays, here even the most common USD wallets offer crypto options so even if people do not much about Bitcoin or crypto they have at least been exposed to it to some degree.

In my city for example, there is a candy shop which accepts BTC, a department shop which also does so and stablecoins are being used much as payment method. Caracas (our capital city) is a place where one could live on crypto.

Any questions about how crypto is doing here, I am glad to respond.

[so98nn]

I barely doubt that. Moreover it’s funny why they are stating this for the developing nations ? I mean they are the one who are worst hit by the government slap for not using the crypto and banning it throughout the nation. They already don’t have that much infra or peeps from developing countries are not that much interested in the same.

I can understand if this statement was made for developed country where the use is way heavy than any other nation. Whether it is bitcoin mining, developing new projects, bitcoin ATM or paying online everything is available at their places and they should be one who are scared of replacing the Fiat economy with crypto economy.

[Doell]

no news yet regarding what OP wrote ,which developing country he is referring to neither ! local currency is still in great demand and is a top priority in physical trading etc. ,many people's minds are still not open thinking about bitcoin how the currency weakens because of bitcoin ! That is not true ^{this is a hidden message?}

[syedzakir]

As now-a-days bitcoin transactions are increasing day by day on the internet so the value of the local currency is affected by this.
As some of the countries don't even know about the e-currency so they are having affect on their economy as well.
But those countries which are already using bitcoin are becoming stronger and more more stable.

[bhooscream]

In my country exactly not. Because Bitcoin cannot be used for payment.
Additionally we  can also see the positive impact of technology in which this can help local economic or communities to enhance their oerformance, financial syatems, and also the qays or strategy to boost the local economy. Online marketing will help so much, so it doesn't weaken the local communities.
It means that ut may depwnd on what kind of local economy, but so far afaik, this will help, not to weaken.

[Darker45]

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We have adopted USD as auxiliar currency, that is a fact and it is the reason we have been able to slow down the inflation here.

On the other hand, I must say that cryptocurrency, even though it has not taken over completely the economy of my country it has indeed gain a big amount of adoption, mainly because we have been mistreated by services like Paypal for years, and the fact it makes easier to conceal our savings from bad people or even send money anywhere.

Nowadays, here even the most common USD wallets offer crypto options so even if people do not much about Bitcoin or crypto they have at least been exposed to it to some degree.

In my city for example, there is a candy shop which accepts BTC, a department shop which also does so and stablecoins are being used much as payment method. Caracas (our capital city) is a place where one could live on crypto.

Any questions about how crypto is doing here, I am glad to respond.

It's nice to hear from somebody who has really experienced things first hand.

So, indeed, there is crypto adoption in Venezuela although not as wide as crypto publications might seem to portray. In other words, fiat still rules the country, although not anymore the local Venezuelan Bolivar.

By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

[Gyfts]

No, because developing communities are not going to use Bitcoin, and that's okay.

Any crypto advocate's goal should not be that every country in the world adopts bitcoin, realistically that'll never happen. The goal of people in developing countries is merely to survive, not to thrive and so there is no incentive for them to adopt a technological "digital" currency, when they probably don't even have access to clean water, let alone any reliable electricity.

Bitcoin's adoption remains solely on large countries shift away from traditional currency systems. Whether someone in Syria or Afghanistan adopts Bitcoin is completely irrelevant to the global economy. There aren't any developing countries that have a large GDP for their economic activities to matter in the first place.

[Hispo]

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By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

The department store uses a payment processor called "crypto-buyer" which is also a not custodial exchange which allows to convert Bolivars into crypto and vise-versa.

In the case of smaller shops they can opt to hold they crypto the earn or make use of very popular apps which allow them to convert easily to stablecoins, like Binance, Reserve or Uphold.

For now lightning network is not common here, bussinesses usually manage on-chain transactions, that it one of the reasons the average venezuelan Bitcoiner also have some altcoins like Litecoin, Dash, ect. In order to avoid fees if one needs to buy small things, for bigger transactions we use BTC or ETH, so the fees can be neglected when compared to the price of the product.

Allow me to share a pic of the candy shop.

[cabron]

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~snip~

We have adopted USD as auxiliar currency, that is a fact and it is the reason we have been able to slow down the inflation here.

On the other hand, I must say that cryptocurrency, even though it has not taken over completely the economy of my country it has indeed gain a big amount of adoption, mainly because we have been mistreated by services like Paypal for years, and the fact it makes easier to conceal our savings from bad people or even send money anywhere.

Nowadays, here even the most common USD wallets offer crypto options so even if people do not much about Bitcoin or crypto they have at least been exposed to it to some degree.

In my city for example, there is a candy shop which accepts BTC, a department shop which also does so and stablecoins are being used much as payment method. Caracas (our capital city) is a place where one could live on crypto.

Any questions about how crypto is doing here, I am glad to respond.

It's nice to hear from somebody who has really experienced things first hand.

So, indeed, there is crypto adoption in Venezuela although not as wide as crypto publications might seem to portray. In other words, fiat still rules the country, although not anymore the local Venezuelan Bolivar.

By the way, how do these shops accepting Bitcoin, like the candy and the department shops that you mentioned, manage the fluctuating Bitcoin fees? Is the Lightning Network being used there already?

Just like El Salvador, LN must be used also in many places and the rest in South America.

Venezuela has an option now with crypto's existence, unlike El Salvador who has no option back then but to only adopt USD. Now 3rd world or developing countries have the option to use BTC to go around economic sanctions. IMF always has to do with sanctions so if they publish things like this, it's not going to be surprising. OP didn't add the link to the source I kept searching for it but none.