Brazilian Congressman Sees Bitcoin As Transformative For The Country

Brazilian Congressman Sees Bitcoin As Transformative For The Country

In an episode of the “Bitconheiros” podcast with guest Fabio Ostermann, the Brazilian congressman commented — among several subjects — on Bitcoin and the adoption of decentralized technologies. This story was shared by local media outlet Boletim Bitcoin.

The Brazilian member of Parliament said that technologies that promote decentralization have the potential to free Brazil, as they can make many institutions obsolete, such as the Central Bank and other institutions linked to monetary policy. He shared,

“I personally believe very much in the future of freedom in Brazil and consequently in the future of prosperity in Brazil. I believe that our children will experience freedom like we never imagined.

“Most probably because of what our generation is building. […] I am very confident in the future of freedom and of Brazil, consequently, because I see that in the worst case scenario, technology will set us free.”

Brazil is currently ranked 133 out of 177 countries in the Heritage Foundation’s index of economic freedom. The Latin American country has not shown any sign of freedom in any observable way.

Bitcoin — as rightly highlighted by the MP and a number of individuals throughout the episode — has the potential to open a great space for the growth of freedom in the world. It eliminates central agents’ monopoly over currency issuance and the financial system.

Adoption Of Bitcoin In Brazil

In recent decades, Brazil has experienced a series of episodes that undermined the population’s trust in state institutions. From 1940-1994, the country experienced severe inflation, and occasional moments of hyperinflation. Many believe this is a major reason why bitcoin is so popular in Brazil. The population is not used to trust the government’s money.

Brazil currently has more people investing in bitcoin and other digital assets than in the U.S. stock market.

The lack of trust in one’s own government due to various historical incidents has become an inseparable part of the culture of Latin American countries. It is not surprising that many South American countries have faced hyperinflation, dictatorships, and the confiscation of savings. This has made it difficult to trust centralized institutions.

Because it is a decentralized monetary network with no need to trust intermediaries, Bitcoin has become a strong liquid alternative to government-issued money, as well as a way to gain sovereignty through a hard currency running on a censorship-resistant monetary network.

“Technology Will Set Us Free”

During the conversation, the congressman — who is known for advocating agendas linked to economic freedom — continued:

“[Bitcoin] will transform several state tools, which today, or until recently were considered as indispensable as even the Central Bank itself. It will make them obsolete as authorities in monetary regulation. “

As stated, Bitcoin has the real potential to undermine the power of Central Banks and monetary institutions around the world because it is a money protocol in the virtual cyberspace of the internet.

Through aligned incentives and an “army of miners” struggling to find new blocks and maintain the safety of the network, Bitcoin has stood firm for 13 years, providing a solid monetary network and a highly appreciable 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 to increase decentralization. It is what some call uberization. But there is a phenomenon behind that which is the phenomenon of decentralization, the decentralization of choices.”

Most likely, Ostermann was referring to decentralized applications, which seek to run services from conventional applications and systems through complex smart contracts. The remarks of the parliamentarian closely match predictions made by Milton Friedman, an economist who said on numerous occasions that the creation of internet money would eventually lead to the demise of governments around the globe.

“The one thing that is missing, but will soon be developed, is a reliable e-cash (electronic money). It is a method that allows you to transfer funds from A-B via the internet without A or B knowing. The way in which I can take a $20 bill and hand it to you and there is no record of where it came from. You may not even know who I am. That kind of thing will develop 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 Joao. Joao contributed this guest post.

Read More