A Financial Revolution: Bitcoin Offers Puerto Rico Independence and Identity

• In 1889, Puerto Rico suffered a 40% currency devaluation, due to the United States setting up the American Colonial Bank and declaring the U.S. dollar as legal tender.
• This devaluation caused Puerto Ricans to attempt to save their net worths, by borrowing money from the American Colonial Bank.
• High interest rates made it very unlikely that locals were going to be able to pay back their loans, so the bank seized their assets.

Puerto Rico has seen it all, from currency devaluations, confiscation of wealth, natural disasters, colonizers and fights for independence all in less than 100 years. Before that, Pedro Albizu Campos fought for Puerto Rico to have its own identity, its own independence and its own sovereignty. But now the world has a decentralized money that can provide Puerto Rico with the independence and identity that it has been starved for and deserves.

In 1889, Puerto Rico suffered a 40% currency devaluation, crippling the Puerto Rican economy. This was caused by the United States setting up the American Colonial Bank and declaring the U.S. dollar as legal tender (the official money) of Puerto Rico, changing it from the peso. This devaluation caused Puerto Ricans to attempt to save their net worths, by borrowing money from the American Colonial Bank. However, high interest rates made it very unlikely that locals were going to be able to pay back their loans, so the bank seized their assets (in these days, typically their land).

This financial disaster was a shock for Puerto Ricans. In 1899, one peso was only worth 60 cents, meaning the local businesses of Puerto Rico and its citizens lost 40% of their net worths overnight from causes totally outside of their control. The citizens of Puerto Rico had no say in the matter and were helpless against the economic disaster that befell them.

Today, the citizens of Puerto Rico are still vulnerable to the same kind of situation. The island uses the U.S. dollar as its legal tender and is vulnerable to the decisions of the U.S. central bank. This chart represents all of the dollars in the U.S. and Puerto Rican economy.

Bitcoin, however, offers a different path. It is a decentralized currency that is not tied to any one country or its central bank. This means that citizens of Puerto Rico can use it to store their wealth in a way that is not impacted by the decisions of the U.S. central bank. In addition, Bitcoin can be used to send money around the world quickly and securely, with no need for intermediaries.

Bitcoin has the potential to give Puerto Ricans the independence and identity that they have been starved for and deserve. It can also provide a way for Puerto Ricans to store their wealth without worrying about devaluations, or the confiscation of wealth by a central bank. With Bitcoin, Puerto Ricans can have the freedom and autonomy to control their own financial destiny.