Wednesday, February 04, 2004

Russians stop using the dollar... Olympics stick to Visa

What does one do in a country where trust in its own government and justice is low? Theory tells us that the local currency will not be used, but rather gold or foreign currency. Consequently Russians were used to think, pay and store value in dollars. In Het Financieele Dagblad, Karel Onwijn describes that, now the dollar loses value, the Russians reconvert the dollar into local currency and Euro.

To remain with the subject. Theory also tells that the use of payment instruments is contingent on force: the power to prescribe usage of particular instruments. In the same FD it is noted that Visa has established its 11th sponsorship of the Olympic Winter Games in Turin. Meaning that all people either pay cash or with Visa (but not with anything else...).