In today’s global economy, African countries, including Kenya, are grappling with currency depreciation amidst the COVID-19 pandemic. Kenya’s President, William Samoei Ruto, pinpointed the issue in relying on the US dollar for trade.
He foresees a potential downfall of the US dollar due to unsteady fiscal management and a leaning towards socialism. He suggests these factors could jeopardize its lasting stability and prosperity.
Kenyan President Williams Ruto urges African countries to abandon the US #Dollar for non US trade, to thunderous applause pic.twitter.com/Sm79rozqne
— 🅰【C】 (@AlertChannel) June 16, 2023
In response to this, President Ruto proposes switching to other fiat currencies, such as the Chinese Yuan or local regional currencies. However, this proposal barely scratches the surface of the real issue. Fiat currencies might give some immediate relief, but they share the same centralized structure.
This centralization exposes them to problems like currency expansion and excessive government control, which also affect the US dollar.
Centralized currencies entrust the economic system’s fate to human hands, which can be error-prone and untrustworthy. History reveals that centralization paves the way for misuse, opacity, and dishonesty. Depending on these currencies keeps the economy on shaky ground and fails to offer a lasting resolution.
Some might bring gold into the conversation as an alternative. Gold does have inherent worth, but it comes with its set of problems. It’s not easy to transact in gold, and, crucially, it’s still under centralized command. This central control undermines economic liberty and flourishing.
Here, Bitcoin comes into the limelight as a battle-hardened currency that shields against the perils of centralization and currency expansion. Its decentralized nature and predetermined supply cap protect against misuse. Past scalability issues did slow down Bitcoin’s adoption, but the advent of SoftNote technology has tackled this hurdle, pitching Bitcoin as a solid choice for nations wrestling with feeble fiat currencies.
Moreover, it’s vital to emphasize that turning to the Chinese yuan could be a misstep. The yuan is subject to even tighter central control, and the Chinese government is notorious for its lack of transparency and authoritarian tendencies.
Relying on the yuan could amplify centralization risks and have disastrous outcomes.
In a nutshell, President Ruto nails the diagnosis of the fiat currency crisis. However, his prescription of migrating to other centralized currencies doesn’t tackle the heart of the matter. For a sturdy economic structure, we need to look at reliable value sources, like gold or decentralized options such as Bitcoin.
Among these, Bitcoin stands tall with its decentralized setup and safeguards against exploitation. By adopting Bitcoin and tapping into its potential for economic autonomy, nations suffering from weak fiat currencies can navigate toward steadiness and affluence.
For Bitcoin to thrive as a viable alternative to fiat currencies, it’s imperative to address scalability challenges. SoftNote emerges as an innovative solution in this context.
As a scaling solution, the SoftNote philosophy allows for streamlined transactions, ensuring faster and more cost-effective processing. This can be particularly beneficial for countries that heavily rely on cross-border trade and remittances.
By integrating Bitcoin with SoftNote, nations can potentially leverage the security and decentralization of Bitcoin while maintaining efficiency in transactions.
This synergy could revolutionize the financial infrastructure, paving the way for sustainable economic growth and stability in regions troubled by fiat currency issues.
What is a softnote? 📜 A softnote is essentially a Serial number and a passcode that represents a BTC or crypto wallet with a certain amount of crypto in it based on the most popular payment denominations. 💼💰 #Softnote #CryptoPayments
— Tectum (@tectumsocial) June 7, 2023
In light of President Ruto dollar diagnosis, governments and financial institutions should seriously consider exploring the benefits of combining Bitcoin with scaling solutions like SoftNote.
Through collaboration and education, the adoption of such technologies can create an environment conducive to economic freedom and long-term prosperity.
