WHEN A STATE BLOCKS ELECTRONIC PAYMENTS … THE ECOCASH CASE

Non-liberal, indeed frankly dictatorial or generically authoritarian, regimes are those that want to limit, with various excuses, the use of a certain means of payment. Paradoxically, they can also try to ban and limit electronic payments, when they are too efficient and risk putting FIAT money in the background, because, all over the world, FIAT money is what guarantees "payment". that is, the discharge from payment obligations. If the electronic payment is managed by the private state. o the central bank, at any level, loses the ability to manage "Payment" and debt cancellation. This is why you do NOT feel the ECB going crazy for compulsory electronic payments, in fact it is completely opposed to under € 3000, but it is a speech that we will deal with separately.

In Zimbabwe, the government has decided to ban electronic payments, especially through a platform called EcoCash. In a situation where the Zimbabwean dollar has no credibility in the population, so much so that the official exchange rate is 25, while the "black" exchange rate is 100, the electronic payment systems have been very successful. Even securities on the stock exchange are preferred to counting because, in any case, the shares of a small exchange like Harare also have a real "Backing", consisting of shares of companies (evidently there is no Wirecard ….). But all this comes to undermine the "Cash", the legal tender currency, which becomes a tinsel. Here then the government of Emmerson Mnangagwam theoretically born as a friend of the market, decided to order, through the Central Bank, the closure of all electronic payment systems and even the nation's Stock Exchange, seen as "Enemies of Zimbabwe" because enemies of legal tender currency.

Ecocash, controlled by the mobile phone company Ecowire, instead decided to bow to the order of the state and invited users to continue operating. A real act of rebellion that undermines the foundations of the state, in this case not democratic, but authoritarian. Because democracy is based on the possibility of free choice and how much I limit it, in one sense or another, in any case I damage it and I must be sure that I have a safe and certified advantage. Otherwise, I leave room only for Zimbabwe-style demagogues, even in Europe.


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The article WHEN A STATE BLOCKS ELECTRONIC PAYMENTS… THE ECOCASH CASE comes from ScenariEconomici.it .


This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/quando-uno-stato-blocca-i-pagamenti-elettronici-il-caso-ecocash/ on Mon, 29 Jun 2020 17:55:33 +0000.