Why anonymous DASH will win in developing countries

alex-ru

Grizzled Member
Dash Support Group
Jul 14, 2014
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Why in countries like Russia anonymous DASH has more prospects than transparent Bitcoin?

I think that Americans and Europeans are staying in the rigid framework of tax, banking and other laws - so it is difficult for them to feel the situation with personal finances among residents of developing countries. However, awareness of this specificity will help them to understand the reasons for the popularity of cash (and in the future - digital cash - "DASH") among people, who recently survived in decaying socialism.

Let's take for example Russia. I am not going to do a full and objective analysis of the difficult economic situation in Russia - it's too complicated task. Instead, I will provide a number of selected bright "markers" - specific facts of contemporary Russian reality. They allow you to get a first approximation, the overall impression and feel the atmosphere of the financial life of the majority of Russians.

1. Despite the fact that Russia is now one of the first places in Europe by the number of ATMs, approximately 85% of all transactions conducted through them are withdrawals after receiving the salary. According to official estimates of the Bank of Russia, more than 90% of all commodity-money relations of the population are served by cash.

2. More than 95% of real estate transactions occur in using cash (even with mortgage transactions). Stacks of cash (sometimes it comes to a few kilograms of) are closing in deposit bank boxes in a subsequent documents exchange for access to these deposit boxes. Transactions through letters of credit are complex and carry additional risks, expences and burdens to the parties. A similar picture with the car market.

3. Almost all businesses, even completely "white", in some cases need cash for maintenance of certain aspects of its activities (informal costs). There are services for "gray cashing" (clearing firm receives a formal cost and gives "unaccounted" cash for informal costs). Cost of such services reaches 10%.

4. The World Bank estimates, the share of the informal sector in russian economy is 43% of GDP. Most of the shadow operations are connected with export and import through offshore schemes.

Officials have contradictory task - to defeat corruption, illegal turnover of cash, etc. in the whole country, but not to hurt themself. Not an easy task, since a significant part of the business and related "shadow" and cash schemes are often directly or indirectly owned by the ... officials. As a result this "struggle" often has merely declaratory and demonstrative character, and the application of laws to limit the cash flow occurs selectively.

Sorry for not perfect English. I hope this info will be helpful.
 

Bridgewater

Well-known Member
Foundation Member
Dec 14, 2014
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I had no idea cash was used so extensively in Russia. It looks like banks there might not have the powerful stranglehold on the economy that banks in other western countries do. There must be a HUGE market for high quality safes and vaults...plus armed security guards ;)