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The economic gamble of digital dollarization

Hazel Wyatt

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Dollarization is a concept with which Latin America is painfully familiar. The pervasive influence of the North American financial powerhouse and its currency is a well-known phenomenon, as is the idea of economic imperialism, often cited as the driving force behind it.

Countries tying their currencies to the dollar in an attempt to create a stable and secure economic investment climate often end up ceding control of their own finances and economy, meaning that when a crisis hits, they can feel it the hardest.

This is the Faustian pact made when linking one’s own fate to the continued success and strength of another entity, and we need to look no further than Argentina for a case study of how dollarization can go awry.

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