Bitcoin Forum

maybe we should look for a banana republic and get them to back by BTC and we would invest to float the country ...

Would it work?? If it does, what does it mean and the future it would bring?

The economy of such a country would crash faster than you can sneeze.

Just imagine. A government that cannot get out of debt by devaluing it, that cannot avoid paying it, and the cost of this debt keeps raising. You get Cyprus on steroids.

Bitcoin is suitable only as a free market currency. As in "freely chosen by the individual participants", when every market participant does his own economic calculation and decides for himself whether it is worthwhile to use Bitcoin as a currency or not. Any attempt to impose it on the economy with a government degree would result in a disaster worse than the imposition of an inflationary fiat currency.

indipendent small country, like the one created by one man, could have this easily i think

A country would not accept it *simply* because they can't control the currency. What a country needs is a fiat paper which they can print when they want at certain conditions in order to manage and control the economy. Like for example, indicators in trade surplus, employment and such. Introducing bitcoin which they have no power to meddle with means it will not work.

I think, a lot of small countries, where tourism is the main business, will soon be open for cryptocurrencies.

I'm not sure if a country adopt bitcoin as the main currency will make a citizen prosperous, because being sued to understand about crypto and ect. And they economy will under control.


This is a good idea.

reminds me of

http://cointelegraph.com/news/112277/let-the-bit-drop-coinapult-sets-to-transform-a-caribbean-island-into-bitcoin-test-ground?utm_source=CoinTelegraph&utm_campaign=9d91eb7f30-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_e86993e3e8-9d91eb7f30-192497013

Imagine a small no name country with a $1 billion M1 switching over to BTC and then the price jumps to 100x over the course of a few years.

I ran for my water company's (our company was a co-op) board of directors back when BTC was worth under $10, one thing I was going to implement was accepting Bitcoin as payment (the only way to pay was to go to the water company office with cash or a check). Their annual budget was under $1 million. Imagine if they had gotten $10,000 worth of payments in Bitcoin that year. They would have doubled their budget just from those few payments.

Aside from price though, a country could be transparent with their spending and be assured that their money was going toward projects that they said they were going toward.

why would any government have bitcoin as main currency when they can't control it and can't create new fiat when needed. that's how governments work. that simply won't change.

Indeed, I am waiting for that to happen. A country like Estonia is the likeliest first adopter...

Well we can contact and give advice about Bitcoin to "government" of those "countries" :D
http://en.wikipedia.org/wiki/List_of_micronations

That's the reason a country would never accept btc as legal tender. Governments don't want their subjects to know where the money is going.

well, if a country to make it a legal tender then BTC becomes a legal tender and therefore mention as a fiat currency. Ideas to bring this BTC to mainstream. Saw a documentary of a floating man made island for the rich and famous.

If anyone could ever somehow get this plan to work you just secured a real demand for bitcins literally, and for once I could actually see bitcoins hitting astronomical numbers in value especially if that country has something special it exports. Within the first few months of this happening everyone involved in bitcoin would literally be rich.

The only way we'll know if it will ever work is if it happens. Maybe one country will adopt it as their defacto currency out of necessity if their economy collapses etc. It would be an interesting experiment for sure.

RuSSiA would be a good bet :D

We would need Bitcoin to attain some stability in terms of purchasing power before anything like this can be attempted.

If you know you cant devalvate you would start handling your income more wisely. Now so many governments dont, and their debt just go up, with sole reason to stay governing.
Who thinks that Bitcoin cant be used as main currency, just dont see the main value of Bitcoin. Bitcoin will take power away from those that so far print money. It will change world.

i don't think any country will accept bitcoin as their official currency untill it gets price stability
right now it seems like a commodity or investment opportunity
it need to be stable to see more growth

they could issue their own digital money pegged to bitcoin with sidechains for example. maybe in 10-20 years  :)

ask why country don't pay stuff from others country in GOLD ...  ::)
well, because they don't have any gold, now  ;D

That is just my point. Country are no longer pegging physical gold but futures. The only concern is that since it is digital it is only matter of time someone is able to crack the code BTC and exploit the coin but it can also be said for fiat currency only difference is that the ledger is kept by banks or users.

If a country administration does use BTC to back its currency as a secondary commodity to gain tracking of a transparent government that the population are able to see what, where, and how the government are spending their money. If such country do exist it would be rather kewl... maybe Sweden?? :D

Ho-ho-ho. And then, there is the real world. You should visit it from time to time.


Things are used as legal tender ("main currency") not because they have value but because they serve a set of purposes, one of which is keeping the government solvent and in power. Bitcoin isn't suitable for this purpose.


Which is the very reason why no government in its right mind would ever use it as a currency voluntarily.


If they wanted to peg their currency to bitcoin (which they don't), they wouldn't need sidechains. They could do it right now, using a currency board mechanism. The same way they could use to peg their currency to gold (which they wouldn't do, either, and for similar reasons).


This statement makes no sense. No countries are pegging (or have ever pegged) their currency to gold futures. You clearly do not understand currency pegging.


This statement makes even less sense than the previous one. You clearly don't understand how fiat currencies work.

The economic ignorance displayed on this forum is simply breadth-taking... Oh, well, I suppose one would observe the same kind of ignorance about cryptography on an economic forum...


Which is yet another reason why a government would never adopt a payment system based on a public ledger.

It's impossible at the moment. There is no country that will accept investments in bitcoin officially, because bitcoin is not recognized as an official means of payment in any country in the world at the moment.