The [world](https://inleo.io/@leoglossary/leoglossary-world) of [cryptocurrency](https://inleo.io/@leoglossary/cryptocurrency) is just getting started.  Actually, we should be more accurate and use the phrase "digital assets".


We see some news being made as [regulators](https://inleo.io/@leoglossary/leoglossary-regulator) from Argentina were meeting with their counterparts from El Salvador.  At the core of this discussion was the path of [digital assets](https://inleo.io/@leoglossary/leoglossary-digital-assets) and the idea of Argentina developing [regulation](https://inleo.io/@leoglossary/leoglossary-regulation) around them.  It seems they have a President who is open to different ideas to tRY and stimulate the [economy](https://inleo.io/@leoglossary/leoglossary-economy).


It is interesting to write from this approach.  Often, we discuss concepts such as the [network-state](https://inleo.io/@leoglossary/leoglossary-network-state).  Hence, applying these ideas to something that is geographically based, such as a nation (or national government) is an added twist.


That said, there are a number of ways that cryptocurrency along with other [digital](https://inleo.io/@leoglossary/leoglossary-digital) [assets](https://inleo.io/@leoglossary/leoglossary-asset) can transform a national economy.  It is not much different than how the [Internet](https://inleo.io/@leoglossary/leoglossary-internet) completely altered how [commerce](https://inleo.io/@leoglossary/leoglossary-commerce) occurs.  While many things are the same, it is interwoven in all we do.


Will digital assets be the same way?  Honestly, if the "tokenization of everything" occurs, as many believe, then yes we will see a repeat.


https://a-z-animals.com/media/2022/12/argentine-flag-flying-on-a-flagpole-on-a-sunny-day-with-clear-skies.jpg_s1024x1024wisk20cAFvXHRY1cxHxHmrZmCVPQndT-uJ3ejCM1dNQRs1vSBc.jpg
[Source](https://nmk.world/the-flag-of-argentina-history-meaning-and-symbolism-211347/)


# Web 3.0: Transforming economies Such As Argentina?


How can digital assets make a difference?


The problem I think a lot have when it comes to mentally grasping the potential is the view that cryptocurrency is another [asset class](https://inleo.io/@leoglossary/leoglossary-asset-class).  To me, this is backwards thinking.


Instead of thinking about crypto as a new asset class, consider the idea that all assets will be tokenized.  Therefore, we are basically looking at a [time](https://inleo.io/@leoglossary/leoglossary-time) when all assets will be crypto.


That shift alone offers enormous potential for a national economy.  


## Global Connection


Historically, many economies were basically cut off from the global economy.  They were connected in the sense that [globalization](https://inleo.io/@leoglossary/leoglossary-globalization) allowed them to participate.  However, those that benefited the most were countries like the US, [China](https://inleo.io/@leoglossary/leoglossary-china), and Germany.


Many countries do not have a great deal of [exports](https://inleo.io/@leoglossary/leoglossary-export).  They also lack the ability to seamlessly attract [capital](https://inleo.io/@leoglossary/leoglossary-capital) in the form of [investment](https://inleo.io/@leoglossary/leoglossary-investment).  For a variety of reason, major institutions tend to avoid many areas of the world.  While they seek high returns, they also assess [risk](https://inleo.io/@leoglossary/leoglossary-risk).  If there is a similar return with a great reduction in risk, that is where the big [money](https://inleo.io/@leoglossary/leoglossary-money) will flow.


[Tokenization](https://inleo.io/@leoglossary/leoglossary-tokenization) changes all of this.  


If a country has different assets tokenized, it now has a global [market](https://inleo.io/@leoglossary/leoglossary-market) to [sell](https://inleo.io/@leoglossary/leoglossary-sell) into.  This could bring in significant money, even if in small [denominations](https://inleo.io/@leoglossary/leoglossary-denomination-bonds).  One of the most powerful aspects to crypto might be the sheer number of people eventually holding assets of value, that which they seek to draw a return on.


Basically, we are all venture capitalists to some degree (or at least money managers).


Might I throw a few dollars (in the form of crypto) at a plumbing [business](https://inleo.io/@leoglossary/leoglossary-business) or [apartment](https://inleo.io/@leoglossary/leoglossary-apartment) complex in Argentina?  I might.  There are many instances where people, including myself, take something on a flier.  


If I am willing to do this, could there be 100,000 more around the world?


There is, however, a way to draw in institutional money.


## Volcano Bonds


El Salvador made news with their concept of "Volcano [Bonds](https://inleo.io/@leoglossary/leoglossary-bond)".


The idea here was to issue bonds to build what was called "Bitcoin City", a development that would be powerful by hydro-energy from a nearby Volcano.  The proceeds of the bonds would be used to pay down the debt while also funding crypto [mining](https://inleo.io/@leoglossary/leoglossary-mining) [infrastructure](https://inleo.io/@leoglossary/leoglossary-infrastructure-computer).


This is an example of what is possible.  


In other [articles](https://inleo.io/@leoglossary/leoglossary-article) I mentioned the idea of [Wall Street](https://inleo.io/@leoglossary/leoglossary-wall-street) hijacking cryptocurrency.  With the introduction of [Bitcoin](https://inleo.io/@leoglossary/leoglossary-bitcoin) Spot [ETFs](https://inleo.io/@leoglossary/leoglossary-exchange-traded-fund-etf), we saw the first leg of Wall Street products.  This will not be the last one.  These [financial institutions](https://inleo.io/@leoglossary/leoglossary-financial-institution) will layer different products on top, selling them into the marketplace.


Why can't a country like Venezuela do the same thing?  It can.


This can open the door to major institutional money starting to flow in.  If the idea is novel, with risk that can be profiled, some of the more aggressive [funds](https://inleo.io/@leoglossary/leoglossary-fund) will take a chance.


Here we see another layer in the global connection.


## Crypto Businesses


The advantage of global participation, and the reason why I think shutting down crypto is impossible, is because we have countries who can benefit.


While the United States is presently taking a hard stance, other countries like El Salvador are the exact opposite.  Obviously the [government](https://inleo.io/@leoglossary/leoglossary-government) of Argentina is considering the same thing.  This means that we see "holes in the bucket". 


If a country is not favorable to crypto businesses and development, it will move elsewhere.  Those that are open to others entering by making it accommodating stand to benefit.  This is where a country like Argentina could step up.


[Silicon Valley](https://inleo.io/@leoglossary/leoglossary-silicon-valley) is one of the epicenters that makes the United States so powerful.  Consider the [wealth](https://inleo.io/@leoglossary/leoglossary-wealth) generated globally by the [companies](https://inleo.io/@leoglossary/leoglossary-company-business) that are based there.  While that has spread out in recent [years](https://inleo.io/@leoglossary/leoglossary-year), it is still a region that exerts are great deal of influence.


What happens if "mini-Silicon Valleys" start to appear, but centered around digital assets?  Could an Argentina get something like this.  For that economy, even if it is 1/500th of what Silicon Valley is, that is a huge boost.


Of course, the real benefits come from the tentacles of that [economic](https://inleo.io/@leoglossary/leoglossary-economic) productivity that spreads into other aspects of the economy.  Here is where the multiplier effect comes into play.


## Part Of The Digital Layer


We have an interesting situation arising.


When we talk about globalization, most usually refer to [manufacturing](https://inleo.io/@leoglossary/leoglossary-manufacturing).  This was basically the outsourcing to countries like China, seeking lower wage factors.  This is nothing new as the entire slave [trade](https://inleo.io/@leoglossary/leoglossary-trade) over the [centuries](https://inleo.io/@leoglossary/leoglossary-century) was about lower [costs](https://inleo.io/@leoglossary/leoglossary-cost) of production.


Due to [technology](https://inleo.io/@leoglossary/leoglossary-technology) and, perhaps, geo-politics, there is a move in the other direction.  Some are theorizing that we will see more fragmentation in our global economy.  [Goods](https://inleo.io/@leoglossary/leoglossary-goods-economic) are likely to be produced closer to where they are consumed.  This makes sense.  If I can build a plant in China and house it with robots, why can't the same happen in Kansas?


The difference in cost of land and [construction](https://inleo.io/@leoglossary/leoglossary-construction-industry) is easily offset by the reduction in shipping.


While this is taking place, we have the digital world.  This is the exact opposite.  It is not fragmented geographically in spite of what countries like China try to do.  Here is where digital assets thrive.


The online world is something that is massive expanding.  Digitization operates at a much faster pace, most likely dwarfing what happened with globalization.


A country like Argentina can insert itself into this realm.  No longer is geography, climate, or natural resources important.  Instead, [bandwidth](https://inleo.io/@leoglossary/leoglossary-bandwidth-hive), [power](https://inleo.io/@leoglossary/leoglossary-power) stability, and compute are the primary factors.  With things such as Starlink and Blue Origin in the works, some of this can be handled from the outside.


Consider the potential that just opened up to a country like Argentina.  If it is aggressive in its solicitation of companies that are involved in the Web 3.0 movement, it could enhance its standing very quickly.


How big is the Internet?  What is the growth rate?  


These are questions that are hard to answer since we have no concrete [data](https://inleo.io/@leoglossary/leoglossary-data).  Essentially, these questions are asking how big is the digital layer?


Whatever it is, even a 15% [growth rate](https://inleo.io/@leoglossary/leoglossary-growth-rate) is massive.  This is the [opportunity](https://inleo.io/@leoglossary/leoglossary-opportunity) for countries like Argentina.


## In Conclusion


[Web 3.0](https://inleo.io/@leoglossary/leoglossary-web-3-0) is a [decentralization](https://inleo.io/@leoglossary/leoglossary-decentralization) mechanism.  That does not mean, however, there are not going to be centralized entities.  We will see businesses set up that are modeled after what we presently deal with.


At the same time, many are going to be geographically based.  As [humans](https://inleo.io/@leoglossary/leoglossary-human), we simply have to be located somewhere.


From an economic perspective, there will be many aspects of the economy still based upon a nation.  However, as we can see, a larger portion can be tied to the "digital economy" which is global in nature.  Here is where the massive growth potential resides.


Web 3.0 is more than just cryptocurrency.  This is what a country like Argentina could take advantage of.  None of these technological advancements is operating in a [vacuum](https://inleo.io/@leoglossary/leoglossary-vacuum).


___


[What Is Hive](https://inleo.io/@leoglossary/leoglossary-what-is-hive)


Posted Using [InLeo Alpha](https://inleo.io/@taskmaster4450/web-30-the-potential-to-transform-economies-like-argentina)