Very far away from the U.S, 5.000 miles south, there has been for many years a dream that has kept people awake. A dream of being able to create something our former colonizers have already accomplished. A dream of trying to unite people from very different cultures and make them come together for a better future.
That dream was called MERCOSUR, and it was supposed to be the South American version of what is today the European Union (E.U).
As with the beginning of the E.U, the South American dream faced many challenges from its birth. Different taxes and economies, a history of wars, different languages and old scars that have taken too long to heal. But everyone was positive and thought that if the Europeans have done it, why wouldn't could we replicate their success. Even if the E.U started as a union for steel production, there was always a long term view (I believe).
The E.U today is based in 4 principles:
- Free movement of people from and to every country. No visas, no customs.
- Free labor market to be able to work wherever you want.
- One market for goods, with no tax on the internal market and a common core international tax base to treat foreigners equal.
- A common currency.
The last one is what it bring us together today. Why do anyone need a common currency?
For many years most Europeans have been in favor of the common currency. It has created one of the biggest markets in the world, with efficiencies that are inimaginables. The frictionless of being able to buy, sell, trade, in more than 27 countries with the same medium is incredible. It has increased commerce and tourism. In my opinion it was has been a powerful tool for growth and prosperities for many of the countries in the E.U.
South America dreamed of having the same. We never got there.
Mercosur* got to some tax benefits, making it easy to move around without the passport and little more than that. With hyperinflations, devaluations, defaults on debts and more, it has been almost impossible to think about a common currency or even a common economic policy. Until now.
When we see what is happening with Greece we ask ourselves, why would we want a common currency? With all the problems the E.U has had to face we are sceptic. Well, but I'm not talking about any common currency. I’m talking about a cryptocurrency.
With the story that South America has with unstable government and crazy economic policies I understand why each country would want to keep their own currency as a way to have independence from each other. This made more sense when our economics where close to the outside world. No currency today is free of volatility coming from the outside. We are interconnected countries that are part of one whole society. With international commerce and communication becoming easier and cheaper we have made ourselves part of something bigger than our own countries. The internet has finish breaking every barrier of communication and markets putting us all together in the same place. But we still want our own currencies.
Each country use their local currency for internal commerce but still trade most of their products using the U.S dollar. A currency that we can't influence in any way. We even don't have total control over the relation between the U.S dollar and the local currency.
We can see this on the relation between the official dollar/peso argentino and the blue dollar/peso argentino. (Blue dollar means illegal dollar).
Does this seems like we have any control over it? We need to take control of our own future (currency) and at the same time make our economies more open to the world and more connected to it.
We need a currency that doesn’t depend on the political decision taken in Washington or does not lose its value because people don't believe in it anymore.
So here is the idea: What if we used Bitcoin as the “first stone” of our economic union? What if we could trade between our countries using Bitcoin? A currency respected and adopted by every country in the union. Making it openly adopted by every retail store in all countries involved: Argentina, Brazil, Paraguay, Venezuela and Uruguay. Also add the associate members: Bolivia, Chile, Colombia, Ecuador and Peru.
We could increase our tourism by creating an industry around the currency. Eliminate the intercountry taxes for those good that are traded on Bitcoin. Adapt all ATM to be able exchange Bitcoin while withdrawing the local currency.
Kept our own currencies so we can keep have an independent economic tool in case things go bad. But also have another currency that don;t depend on our own political problems. Be able to know that there is one currency that we all hold, respect and have our back in case of depreciation.
What if we control our own economic destiny? Each of us. Individuals.
I believe the currency should serve the people. I think Bitcoin can do this.
Mercosur*: Mercado Común del Sur (Common market of the South)
PS: Hope you find this post interesting. It would mean a lot to me if you Recommend it. Also tell me on Twitter, I’m @JDcarlu
