Sovereign Staking Infrastructure

This is going to be a very short article but the idea here is extremely big. It is not really a stretch to state that central banking as a concept is going through changes. As the dollar remains strong, emerging nations and the global south are finding themselves burdened with excessive dollar denominated debts, which are expensive to pay off.

Many nations in the world print their own currencies and operate their own central banks. Even the tiny nation of New Zealand has one. Yet — Increasingly — we are seeing developments such as the recent occurrences in Nigeria where the government has apprehended Binance executives in an attempt to prevent alternative currencies from conflicting or disrupting local central bank policy.

I think it seems likely that small central banks do not have much of a future.

With El Salvador, we see a single tiny nation beginning to play around with the idea of holding sovereign cryptocurrency assets. As a South American nation, El Salvador and other countries receive the majority of their incoming finances in the form of remittances. Digital currencies enable instant, low cost transmission of remittances. An initial step in replacing central banking might be the move to the dollar. This is where Argentina is heading. A second is to handle a combination of currencies including digital payments.

What I am anticipating in coming years is that global south nations may or may not adopt bitcoin, but it will increasingly make sense for smaller nations to skip having central banks, perhaps experiment with holding cryptocurrencies at a national level (highly risky) and ultimately settle on the next thing: Sovereign Staking Infrastructure.

It is logical to me that most global south nations should be operating their own proof-of-stake validator nodes. Note the lack of validator node coverage on behalf of Jito, one of the largest infrastructure providers in the Solana ecosystem.

Africa and South America have very few, if any, Jito nodes. I believe this needs to change. You are looking at the new central banks here. You are looking at sources of sovereignty. In order to be financially and economically sound, independent and secure, a program or programs must be designed to train, educate and spread validator infrastructure operated on the national level to various global countries.

It can’t be any other way.

With the arrival of Solana Firedancer (TBD), the Solana network will be capable of processing 1,000,000 TPS. Already on the verge of surpassing Ethereum network activity. When Firedancer arrives, a fully open source ultra-high performance blockchain network, there will be potential for a new era in national banking and financial system sovreignty.

I am currently imagining this program “Solana Nations.” A training and education program to help emerging market nations replace and modernize their own sovereign financial infrastructure in the new age of blockchain freedom.

The benefits of operating sovereign proof of stake network nodes are quite interesting:

• Generate passive income for the nation (perhaps via taxation)
• Use staking to nodes as a mechanism for granting digital citizenship
• Ensuring freedom and security of local blockchain networks and perhaps sovereign digital currencies
• Voting in elections

We are in early days. But one thing seems clear: Using ancient financial infrastructure in the new era should migrate to PoS networks.

Buying and stockpiling Bitcoin is not the answer. Emerging markets must disrupt their own financial banking infrastructure.