Welcome to the second article in an informative series we’ve developed which highlights real-life use cases for a Crypto Credit Union. For an in-depth exploration of this popular topic, get Your Crypto Credit Union whitepaper.
Below is our second article in the series, Argentina, The Inflation State.
The Problem with Inflationary Fiat Currencies
Argentina is one of the richest countries in the world. Did you know?
- It has the 2nd largest economy in South America
- the 5th largest in the Western hemisphere
- …and 20th largest in the world
Argentina is amazing with a rich culture, vibrant cities, beautiful land, excellent schools, very high literacy rates, the best healthcare system in South America and low violent crime rates. In most ways, Argentina is a very successful nation.
Except one!
Problem – Argentina experiences extreme and chronic inflation. Argentinians experienced 200%+ annual inflation in 2023. Chronic inflation has forced Argentina to declare sovereign debt default 9 times (bankruptcy) and forced new sovereign currencies 7 times.
Over eighty years of inflation has made the US Dollar the de facto currency. All major assets such as real estate, cars, appliances are priced in dollars. Argentinians love the US dollar. Unfortunately, the Argentinian government hates the dollar and severely restricts its usage and exchange. Illegal black-market exchanges called “Blue-Dollar” exchanges are common – but they convert pesos to dollars at usury exchange rates.
Keeping your weekly pay in peso savings is foolish, because it will lose half its purchasing power by your next paycheck. So, people take the risk and illegally exchange pesos on the black market and store US dollars (cash) at their “colchón bank” a.k.a. stuffed in their mattresses.
Every US dollar stored is at serious risk of confiscation, theft and robbery. Every peso stored safely at a bank are at risk of extreme devaluation, taxation and revaluation. What gives?
Internal Crypto Currency, Backed by US Dollar Deposits
Solution – An international credit union built on blockchain technology and domiciled in the United States, utilizing an internal crypto currency backed by US Dollar deposits. This successfully creates a legal exchange and savings workaround for any member of the credit union. (Reference YCCU Whitepaper)
So, as a Crypto Credit Union (CCU) member you can legally exchange pesos via ETH or BTC into a CCU crypto stablecoin (Credit Union Coin – CUC), fully backed by US dollar deposits. Member savings:
- are pegged to the dollar
- enjoy market rate exchanges
- are safe from prying eyes, home robberies and street thefts.
A member can now save their paychecks safely and support their families. Members may also transact privately with other members. Member-to-member transactions occur within the CCU system utilizing the same stablecoin and unknown to anyone. So, one member can purchase a used refrigerator from another member privately and without risk.
Understanding Crypto Credit Unions
A Crypto Credit Union:
- Uses CUC™ (Crypto Units of Credit), which are fully backed by 100% US dollar deposits, minimizing inflation risk to match US inflation rates.
- Provides secure value storage with seamless capabilities for exchanges, payments, and transactions.
- Bypasses exchange restrictions and avoids the risks of illegal trading.
- Ensures privacy, reducing exposure to confiscation, theft, and robberies.
All this is clearly a blow to parasitic hyper inflated economies – and a clear benefit to Argentinian families.
CCU is domiciled in the United States and therefore must adhere to US laws and regulations. Credit union operations are visible to US regulators and law enforcement only. All members must adhere to “know-your-customer” regulations.
CCU is embracing the US regulatory framework and law enforcement. Local crime lords or corrupt bureaucrats cannot compel the United States to disclose CCU information. Only national authorities and law enforcement agencies utilizing international laws will get the US government’s attention, and even then, it’s unlikely the US will disclose.
A Series of Use Cases for Crypto Credit Union
If you enjoyed this article, stay tuned! We’re developing an informative series of use cases for YCCU (Your Crypto Credit Union):
- Remittance State – India
- Inflation State – Argentina
- Failed State – Lebanon
- Pirate State – United States
Regulation and technology are ready and available to create a digital credit union. If you’re a Whale and you want to get started now, reach out to us at Gilman Patrick. We know a thing or two about US banks and credit unions…
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