Can Bitcoin ease the East-West confrontation and help restore the reputation of the IMF?

Now let's go back to the Cold War. While most of us take it for granted that the Cold War ended with the collapse of the former Soviet Union more than 20 years ago, the current situation suggests a different answer. It is no longer a secret that the conflict between Russia and the United States and its allies is intensifying.

The United States and the Russian Federation are two superpowers commanding the two most powerful militaries in the world. Both countries argue with each other in public; currently, most of their conflict is in politics, diplomacy, and espionage. Although the situation is getting worse, common sense and the suppression of many powerful people have prevented a showdown between the two sides. However, the risks remain high as politicians and bureaucrats try to push the limits of both sides.

The latest attempt is the latest policy change of the International Monetary Fund. The United Nations and its departments have become less important to the countries with veto power, because they are more interested in achieving their own goals. The International Monetary Fund even joined the United Nations by favoring the United States and its allies.

However, the UN and the IMF can overcome this popular perception and redeem their reputations with the right technology and processes. The technology behind cryptocurrencies is an ideal fit for them; innovations in blockchain technology have enabled the development of a range of solutions that make electronic administration and smart contracts possible. Digital currencies alone can make the world a better place.

Recently, the IMF announced a change in its lending policy, which will allow countries that default on their debts to apply for more loans without paying back their debts. The new guidelines have triggered a strong reaction from Russia, as Ukraine needs to repay a $ 3 billion debt to Russia by the 20th of this month. To make matters worse, Ukraine has announced that it will not pay the money back to Russia anytime soon, and Russia believes that the IMF's move is an attempt to collude with Western bloc countries to alienate Russia while ensuring that Ukraine can continue to receive financial assistance.

On the other hand, it can be said that this IMF policy is particularly suitable not only for Ukraine, but also for countries like Greece that are currently facing an economic crisis. Perhaps this policy has more benefits than disadvantages; however, new reports indicate that Western bloc economies are pressuring Russia to restructure Ukraine's debt.

Now, imagine a world where every country uses Bitcoin or a Bitcoin-like digital currency as legal tender, and all agreements are enforced by smart contracts. This would make it much easier to pay off debts or enforce trade agreements. Smart contracts would automatically transfer money from national treasuries to creditors who should be paid, ensuring that every country does what it can to ensure its economic momentum is strong.

In the absence of such a system - if Ukraine is unwilling to repay its debts - Moscow is considering using legal means to deal with its neighbor. The debt moratorium ends on the 30th of this month, so let's see what happens then.