Michael Terpin is the founder and CEO of Transform Group, a diversified blockchain services group based in San Juan, Puerto Rico, where he is currently sheltered in place.
What more could a burgeoning technology ask for to thrive? Massive global unemployment, cascading in waves as a viral pandemic shutters most parts of the non-digital economy, has put the world on the precipice of the “everything bubble” Satoshi Nakamoto sought to inoculate us against with the creation of bitcoin.
This is both the moment the cryptocurrency community has both eagerly awaited and dreaded. A global pandemic hitting just as sovereign currencies are being architected should serve as an accelerator for rapid issuance and acceptance. This should be true in particular for teetering third-world economies lacking a global reserve currency to inflate their monetary bases without hyperinflationary hell to pay. Additionally, there are undeniable health and hygiene benefits over paper currencies, not just better trackability for tax collection and law enforcement purposes.
The wheels of legislative and regulatory approval grind slowly in normal times, so it is encouraging that a preliminary digital dollar program nearly made it into the Congressional aid package for displaced workers and shuttered businesses as a better way to quickly distribute the multi-trillion-dollar creation of magic Federal Reserve money. Sadly, it was pruned from the final bill on the legislative cutting room floor. Instead, we are left to fill out forms downloaded from bank websites that cannot handle the traffic. These loans may take months to process at a time when millions of recently unemployed workers have little to no savings.
Many of the industries where physical contact is required at the last mile are having their legacy supply chains disrupted. Seminars and conferences cannot take place in closed hotels with few planes to fly them in….