Bitcoin: Jordan's Best Hope for Debt Recovery and Financial Sovereignty
Jordan buying BTC as a country might be ambitious, but at the bare minimum the Jordanian population should have the option to legally and compliantly invest in one of the best performing financial assets in history.
I know many people will think the above statement is hyperbole. However, today I saw an interview on Al MamlakaTV news channel with an economics professor that Jordan’s poverty rate is increasing and that fruits are now considered a luxury item for 85% of Jordanian households! This was painful to hear, but not surprising. Two facts convinced me that Bitcoin is our best hope:
1. Deteriorating Purchasing Power: All fiat currencies are like melting ice cubes, including the U.S. dollar. I'm not referring to their relative strengths against each other; I'm talking about real purchasing power. The U.S. dollar has lost 24% of its purchasing power in just the past four years alone, continuing a trend of devaluation that accelerated after the world abandoned the gold standard in 1971. The rate of devaluation varies from country to country. For example, Egypt and Lebanon's currencies have lost over 50% and 90% of their value, respectively, in the past five years alone. Even if your country's currency is pegged to the dollar, you're still losing purchasing power. Just compare the prices of real estate, groceries, or school tuition to five or ten years ago. This isn't by accident; it's the direct result of issuing more monetary units into the system, plain and simple.
2. Dinar Assets, Dollar Liabilities: The world is currently facing a sovereign debt crisis. Global government debt has reached an all-time high of $82 trillion, soaring by $20 trillion since COVID-19, $50 trillion since the 2008 financial crisis, and has increased sevenfold this century in under 25 years! Jordan's debt-to-GDP ratio stands at around 80% today. Relying on dollar-denominated debt is not a sustainable solution. Eventually, borrowers end up owing more to creditors than they originally received, leading to dire consequences. The cycle typically involves issuing loans that can't be repaid, followed by refinancing with conditions known as "structural adjustments." These adjustments often prioritize exporting crops over domestic subsistence, leaving the country financially strained and reliant on food aid. This is how Jordanians cannot afford fruits in a land abundant with local produce! Eventually, the currency is devalued to inflate away the debt. While we hope this fate can be avoided for Jordan, history has shown that this path has been grim for every country facing similar circumstances.
Jordan’s balance sheet includes a good % of gold reserves which is great, as your purchasing power is almost guaranteed to be obliterated if you save in USD. Just ask your parents how much it used to cost to do or buy anything 30 years ago (go to school, buy an apartment or car, etc.). Jordan buying BTC as a country might be ambitious, but at the bare minimum the Jordanian population should have the option to legally and compliantly invest in one of the best performing financial assets in history.
Jordan has two choices: either keep its head in the sand and hope for a miracle, or take a chance by becoming one of the first countries to adopt Bitcoin as a treasury reserve asset and develop a legal framework to allow its citizens to safely access Bitcoin and preserve their purchasing power. It represents the most asymmetric bet in the history of financial markets. For 85% of Jordanians, fruits are a luxury item! We have nothing to lose and everything to gain.
