Thank you for asking this. I think most people might have the same in various shapes and forms and it’s a good question:
1) that merchant selling ice cream in Rwanda most likely spends RWF to make the ice cream and sell it… so it’s to be expected it wants to be paid in RWF to make more ice cream. This is not someone who’s trying to speculate or hedge… it’s commerce, I spend in RWF, I get revenue in RWF. No FX risk needs to be managed. And what happens where there no USD available in the market? No impact.
2) when buying USDT, you are literally replacing RWF in your holdings with a USD-denominated asset. Pure substitution of a sovereign currency (at a very micro level). And from there if you want to use that USD-denominated asset locally for payments, you are displacing the demand of RWF that I mentioned above in #1 with another country’s currency-denominated asset. If the latter also happens, what happens when there is USD shortage in the market and all merchants expect to be paid in USD? Black market rates and destabilization of the a country’s local currency.
I know many will say “USD is king” or “Bitcoin!”, that’s fine, but please understand why central banks will always aim to protect its sovereign currency. And move accordingly.
PS: Dollarization is not the answer to inflation and trade issues. It’s a terrible bandaid at best.
Lol what’s difference between buying Ice cream and buying USDT using RWF on P2P on any platform ? How does that invalidate the sovereignty of the RWF?