I'm very tempted to blog about BTC price again today, especially in light of what I read in one article today

But I shall resist that temptation and stick to my planned topic. I'll probably return to BTC price tomorrow, when I aim to discuss medium-term price projections.

From http://www.publicdomainfiles.com/show_file.php?id=13947878429441

Analysis of an analysis: The IMF trying to stop The Marshall Islands from adopting cryptocurrencies

I wish to start by crediting CCN (www.ccn.com) with publishing the article I am talking about today. The original article can be found at: https://www.ccn.com/why-the-imf-is-trying-to-stop-marshall-islands-from-adopting-crypto/. All the quotes in my post today are extracted from that article.

I read the article this morning and I'm sad to say that I was not particularly impressed. Why not? Because it stated the narrative as reported and not much else.

One of the most important things I have learnt in writing documents is that your inputs should add value! If your covering letter/report/presentation/etc adds no value, then why does it even exist? For me this article fails to add value, which is a pity, as it has a golden opportunity to do so.

I don't know the author, but I saw another article of his which almost forced me to blog about BTC price again today (as I mentioned above). I disagreed with the analysis there, but that is tomorrow's story, I won't elaborate on that now.

On to today's topic:

Allow me to add value

My plan for this post was not to copy and paste the entire article, (you can after all always read it for yourself by clicking the link I supplied), but as it is relatively short there is really almost nothing that I can leave out. I will copy and paste all the important points where I think the author should have stated the implications or reasons for whatever was being discussed. Basically this amounts to most of the article.

I've said before that crypto is at war with fiat. That is not a joke, nor is it an embellishment of the truth. When writing about crypto I demand a certain degree of support from other alleged crypto fans. Only by standing together can we dismantle the corrupt and thoroughly rotten old financial institutions. Crypto supporters who are pro-fiat are not proper crypto supporters, they have missed the point of crypto.

Enough ranting - on to the article:

Excerpts from the article - with added Bit Brain inputs

The International Monetary Fund (IMF), a global financial organization run by 189 countries, is against the proposal of the Marshall Islands to launch a sovereign digital currency by adopting crypto.
As early as September 10, the IMF criticized the finalized plans of the Marshall Islands of creating a national cryptocurrency, citing potential money laundering, financial integrity, and macroeconomic risks.
“In the absence of adequate risk mitigating measures, the issuance of a decentralized digital currency as a second legal tender would not only increase macroeconomic and financial integrity risks but elevate the risk of losing the last U.S. dollar CBR.”

Starting off by boasting the credentials of the IMF should have been an immediate warning sign for me, or for any other crypto supporter reading the article.

Then it launches straight into the list of risks and negative points, without refuting those accusations or pointing out the flaws in the argument as it goes along. It addresses some of them later, but this is problematic. By not tackling them immediately, something called "The Primacy Effect" sets in. This effect should be known to professional writers. Very basically put, it states that the beginning and end of your document carry the most weight and stay with the reader. Compounded upon this is the problem of creating a negative first impression. By initially portraying crypto in a negative light, the author creates a subconscious bias in the reader. Whatever the reader reads after that will be filtered through this new bias, with the result that pro-crypto messages which come later may well be lost.

To return to the quote: the flaws of fiat are myriad. I could list them individually, but I'll rather refer you to this fairly comprehensive post which I have already written on the subject: https://steemit.com/cryptocurrency/@bitbrain/money-understanding-it-and-cryptocurrencies-part-3-cryptocurrencies

In case you don't feel like reading that old post of mine (you should, it's a great post), then the argument basically goes: everything they accuse crypto of (money laundering, financial integrity, macroeconomic risks), fiat does too, and far more so! It also does many other truly terrible things that crypto does not do!

According to the IMF, the Marshall Islands is largely dependent on external aids offered by major economies like the US. If the government pursues its proposal to launch a national cryptocurrency, the IMF suggests that many countries could cut financial aid that is currently being offered to the Marshall Islands

That's a threat. A economic threat in broad daylight. The same kind of economic sanctions usually reserved for those who e.g. routinely violate human rights. The IMF are bullies!

In May, the Marshall Islands initially disclosed its plans to eliminate its dependence on the US dollar and switch to a national cryptocurrency.
At the time, David Paul, minister-in-assistance to the president of the Marshall Islands, said that as a nation, the Marshall Islands have the right and authority to launch a national currency regardless of the form of the currency.
“As a country, we reserve the right to issue a currency in whatever form it is, whether in digital or fiat form,” Paul said.

Of course they do! Who the hell gives other nations the right to dictate to a sovereign nation what kind of currency system it must use? It's ludicrous! Imagine how the US would laugh if The Marshall Islands told them that they can't use the US Dollar anymore! Neither nation nor international bodies have any right to interfere with the peaceful sovereign affairs of another nation! Wake up IMF, The Marshall Islands have been independent for decades already!

However, as demonstrated by several studies including economist Richard Wright’s “Less Cash, Less Crime: Evidence from the Electronic Benefit Transfer Program,” physical forms of money like cash are significantly overutilized by criminals than electronic alternatives, because by nature, cash is anonymous.
“It has been long recognized that cash plays a critical role in fueling street crime due to its liquidity and transactional anonymity. In poor neighborhoods where street offenses are concentrated, a significant source of circulating cash stems from public assistance or welfare payments,” the study read.
As such, the basis of the claim of the IMF that the creation of a national cryptocurrency by the Marshall Islands should be prevented due to the possibility of money laundering can be questioned, given that the effect of cash on enabling criminal activities is well documented.

This point is very valid and should be highlighted far more and far earlier in the article than what it is. But you should never require a study to show you common sense, you should see it for yourselves! Sadly this is often not the case with people, which is why people like Bit Brain are so necessary!

The threat to cut financial aid to the Marshall Islands is working. Earlier this week, Dr. Hilda Cathy Heine, President of the Marshall Islands, faced political attacks due to the proposal of the government to pursue the development of a national cryptocurrency.
Political pressure could force the Heine administration to lay off the plans to launch a digital asset, at least temporarily. Eight senators in the Marshall Islands have already submitted a motion of no confidence, fiercely opposing the initiative set forth by President Heine.

It must be stated how very wrong this is! This is how tyrants operate and how they remain in power. By coercing the masses to do their will, they orchestrate the entire symphony that is the movement of money around the globe. And they do this for one reason only: to enrich themselves! Pressuring the president of The Marshall Islands is a typical move of these draconian fascists, people hell bent on maintaining the vast poverty gap. They have obviously either already completed their successful smear campaign against the president and/or they have bought the votes which they need to execute their will. Sickening!

Footnote

Keep a wary eye open for crypto reporting which isn't pro-crypto. I know full well that crypto fans are often mocked when they say that they are in crypto because of what it stands for, not to make money. The truth is that it is probably a bit of both. Money certainly drew me to crypto, but what crypto stands for is far more important to me now! Don't let crypto become tainted like fiat. I know that there is already plenty of market manipulation in crypto, I know that fiat money is already in crypto too. But crypto can be a huge global wealth equaliser, and as crypto supporters we should all be working hard to drive that agenda, not inserting it as an afterthought into our writings.

Interesting update:

Read this to see how a bank is preventing Venezuela from getting its own gold reserves after it issued a state cryptocurrency! https://www.ccn.com/op-ed-uk-central-bank-holds-venezuelas-gold-hostage-bitcoin-users-unaffected/

Yours in crypto,
Bit Brain

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