Bitcoin is emerging as a potential revolutionary force in developing countries where economic problems are a constant struggle, often plagued by inflation, currency devaluation and circumscribed access to established financial systems.
In Suriname, a South American country facing significant economic difficulties, a political candidate is making waves by presenting a bold proposal – adopting Bitcoin as the basis of the country’s financial system.
First Bitcoin
Maya Parbhoe, a self-proclaimed “Bitcoin first, politician second,” is campaigning for president on a platform based on the widespread adoption of Bitcoin. Her vision? To protect Suriname from the dangers of an unstable national currency and open a modern era of financial integration.
pay attention to @MayaPar25 — when he wins next year, he will become the next president of Suriname.
She is also extremely grounded and told me that she is “Bitcoin first and politician second.”
AND #Bitcoin Standard comes to Suriname 🇸🇷
pic.twitter.com/sRQMg1zIf8 https://t.co/sebAx4zdb0
— Walker⚡️ (@WalkerAmerica) June 24, 2024
The Parbhoe plan is tripartite. First, it aims to encourage companies and individuals to apply Bitcoin for everyday transactions, from shopping for groceries to paying bills. Second, a clear and supportive regulatory framework will be established to foster trust and growth in the Bitcoin ecosystem. Finally, a nationwide educational campaign will equip citizens with the knowledge and skills to navigate the world of digital currency.
Image: Medium
Suriname focuses on cryptocurrencies
Suriname is not alone in its Bitcoin aspirations. Savior, another developing country struggling with economic instability, has already taken a historic step. The Central American nation recently announced its first-ever Bitcoin-based capital raise, in partnership with digital asset services provider Bitfinex Securities.
BTCUSD trading at $60,585 on the daily chart: TradingView.com
The move signifies El Salvador’s intention to apply Bitcoin to participate more broadly in the economy. By “disintermediating” established finance, the initiative aims to augment the availability of capital and investment, especially for those who have been excluded from conventional financial systems.
Shield vs. Inflation
But it is Bitcoin magic bullet for developing economies? Enthusiasts like Parbhoe believe this could be a game changer. Bitcoin, unlike fiat currencies controlled by governments, boasts a finite supply, potentially providing protection against inflation. Additionally, its decentralized nature eliminates the need for intermediaries, potentially lowering transaction fees and increasing financial transparency.
Significant obstacles remain on the path to Bitcoin-based prosperity. The most glaring challenge is Bitcoin’s notorious price volatility, which makes it a risky proposition for day-to-day trading.
Accessibility is another issue, as internet vulnerabilities in developing countries, especially rural areas, could exclude many people from the Bitcoin-based financial system. Additionally, the environmental impact of Bitcoin mining raises sustainability concerns.
El Salvador’s experiment and Suriname’s potential future efforts will be closely watched. While Bitcoin’s potential benefits are undeniable, its long-term viability for developing economies remains uncertain.
Featured image from About Bitcoin, chart from TradingView
