Bitcoin in El Salvador, the Venezuelan lettuce market and an order to Chinese millionaires.
It’s Friday and your mailbox knows it! Here are our best readings of the week, with eñes and accents, that you won’t find anywhere else.
Don’t worry about money, said a friend’s father. Then he finished: there is none.
But we all worry about money. And that eagerness not only fuels our daily work, the entrepreneurial spirit, the tax packages, organized crime. It also drives creativity and innovation.
El Salvador this week became the first country in the world to use a cryptocurrency, bitcoin, as legal tender. President Nayib Bukele said the measure would give greater financial independence to the country, which has a dollarized economy.
Crypto what? In simple terms, bitcoin is a digital currency that can be used to save and buy. no need for a traditional financial intermediary.
In Venezuela, where stratospheric inflation complicates the simplest financial operations, people turns to an informal ‘lettuce’ economy, the clever term used to refer to dollars in code.
In China, faced with stagnant economic growth and discontent over the income gap and lack of opportunities, President Xi Jinping has called for millionaires donate some of their wealth and contribute to the “shared prosperity” plan.
The solution to money problems, however, is not as simple as giving a digital wallet to an entire country, creating a parallel market for dollars out of necessity, or reaching into the pockets of entrepreneurs in one of the world’s largest economies. big on the planet.
International organizations, for example, fear that a cryptocurrency in El Salvador will open the door to money laundering and other financial crimes. In Venezuela, the fees for moving dollars in an unregulated market are high and there is no protection against hyperinflation. And experts suggest that the Chinese government, instead of asking for donations, could introduce property and income taxes on the wealthiest.
By the way: talking about money with your partner can be uncomfortable but it is key to a healthy relationship. here we tell you how to do it.
California at a crossroads
California Democratic Governor Gavin Newsom faces a recall process. On Tuesday, September 14, voters will decide whether to leave office. The state has a peculiar history of direct democracy and a particular fondness for recalls: every state governor since 1960 has faced a challenge to their mandate at the polls.
Latinos, who make up a third of the electorate in California, they have not shown much interest in participating. Newsom has the image of a millionaire disconnected from ordinary people and has not been able to mitigate the effect of the pandemic among the Hispanic population, which has suffered more hospitalizations and deaths from covid in addition to unemployment.
For those who read us in the golden state, here is a guide on how to vote.
If you wonder what happened to that other millionaire who became governor of California after another recall — Arnold Schwarzenegger— here is something for you.
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PS: When we were preparing this edition, our colleague Juliana Barbassa suggested listening to the song “Não Quero Dinheiro” by Tim Maia and so suddenly we ended the afternoon compiling a series of songs about money. Which would you add?
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