In an episode of the “Bitconheiros” podcast with guest Fábio Ostermann, the Brazilian congressman commented – among several topics – on Bitcoin and the introduction of decentralized technologies. This story was shared by local media Boletim Bitcoin.
The Brazilian MP said that technologies promoting decentralization have the potential to liberate Brazil as they can render many institutions, such as the central bank and other institutions linked to monetary policy, obsolete. he shared
“I personally believe very much in the future of freedom in Brazil and consequently in the future of prosperity in Brazil. I think our children will live with a degree of freedom that we never imagined.
“Most likely because of what our generation is building. […] I am very confident in the future of freedom and Brazil because I see that at worst, technology will set us free.”
Brazil is currently ranked 133 out of 177 countries on the Heritage Foundation’s Index of Economic Freedom. The Latin American country has not had a significant hint of freedom in any visible aspect.
Bitcoin – as the MP and a number of people throughout the episode have rightly pointed out – has the potential to open a huge space for freedom to grow in the world. It eliminates the monopoly on the issuance of currency and on the financial system from centralized agents.
Adoption of Bitcoin in Brazil
Brazil has experienced a series of episodes in recent decades that have undermined popular trust in state institutions. From 1940 to 1994, the country experienced severe inflation and occasional moments of hyperinflation. Many point out that this could be a key reason for Bitcoin’s popularity in the country, as the populace is used to not trusting government-issued money.
More people are currently investing in Bitcoin and other digital assets in Brazil than in the US stock market.
The lack of trust in one’s own government due to various historical events has become an inseparable part of the culture of Latin American countries. Since most South American countries have experienced hyperinflation, dictatorships and confiscation of their savings, it is natural that there is resistance to reliance on centralized institutions.
Because it is a decentralized currency network that does not need to trust intermediaries, bitcoin has become a powerful liquid alternative to government-issued money, as well as a way to gain sovereignty through a hard currency running on a censorship-resistant currency network.
“Technology will set us free”
During the call, the congressman — known for championing agendas related to economic freedom — continued:
“[Bitcoin] will transform several instruments of government that are now, or until recently, considered as essential as even the central bank itself. As authorities on monetary regulation, it will sooner or later render them obsolete.”
As previously mentioned, Bitcoin has real potential to undermine the power of central banks and financial institutions around the world as it is a money protocol in virtual cyberspace of the internet.
With coordinated incentives and an “army of miners” struggling to find new blocks and maintain network security, Bitcoin has held its ground for 13 years, providing a solid monetary network and an extremely valuable liquid asset.
The congressman also highlighted the emergence of a number of technologies that have the potential to reduce the role of the state through decentralization. “The trend is that we’re going to follow the path of increasing decentralization… Some people commonly call that uberization… But there’s a phenomenon behind it, which is the phenomenon of decentralization, the decentralization of choice.”
Most likely, Ostermann was referring to decentralized applications trying to run services from traditional applications and systems through complex smart contracts. The MP’s remarks closely resemble predictions made by economist Milton Friedman, who has stated on several occasions that the creation of internet-native money would ultimately be responsible for reducing the role of governments around the world.
“The only thing that is missing but will be developed soon is a reliable e-cash (electronic money). A method that allows you to transfer money from A to B on the Internet without AB or BA knowing. The way I can take a $20 bill and give it to you and there’s no record of where it came from. And you can understand that without knowing who I am. That’s what’s going to happen on the Internet…” – Milton Friedman, in a 1999 interview.
Bitcoin is a hope for Brazil, for Latin America, and for people around the world.
This is a guest post by João. The opinions expressed are solely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.