Economists suggest small Bitcoin reserve

[pawel7777]

Just came accross this (found on reddit):

http://www.nationnews.com/nationnews/news/74760/economists-suggest-bitcoin-reserve

...
The two, who have both served as head of the Barbados Economic Society and currently lecture at the University of the West Indies, Cave Hill Campus, said once more participants like Citibank “continue to enter the market and support transactions via the blockchain”, “the counter part risks to smaller and highly vulnerable central banks, such as the Central Bank of Barbados, will be minimised”.
...

Likely to heppen?
I wonder what would be the 'small' amount in terms of Barbados.

[franky1]

Just came accross this (found on reddit):

http://www.nationnews.com/nationnews/news/74760/economists-suggest-bitcoin-reserve

...
The two, who have both served as head of the Barbados Economic Society and currently lecture at the University of the West Indies, Cave Hill Campus, said once more participants like Citibank “continue to enter the market and support transactions via the blockchain”, “the counter part risks to smaller and highly vulnerable central banks, such as the Central Bank of Barbados, will be minimised”.
...

Likely to heppen?
I wonder what would be the 'small' amount in terms of Barbados.

there are two parts to the story.. the bit about citibank is not talking about bitcoin (currency), they are talking about blockchain(technology).

in other words citbank making an alt of 20mill coins which measures as a possible units of
20,000,000,000,000.00 (20 trillion including ability of cents/pennies)
( 20,000,000.00000000 )

then instead of having to have auditors, fraud departments, security and other measures to prevent their own staff 'creating money'. the blockchain of their altcoin will self regulate and audit each transaction.

as for banks holding bitcoins as an asset for investment. well banks do love risky investments and with the volatility i see they will love it. the issue though is some countries have banned bitcoin to be invested by banks, because government regulators wont insure the holdings.. so as long as barbados doesnt ban bitcoin for banks, i can easily see some banks hold bitcoin

[zimmah]

their total reserve in fiat currency and gold is around 700 or 800 million.

it won't have a big impact.

but, if more countries start adding bitcoin to their portfolio, it will cause a large impact on the price.

[angaper]

Although it is true that actually this news is not about such a suggestion, I cant understand why largest banks are not accumulating right now bitcoins as a very convenient instrument in the long run, and I am a bit concerned about it because it seems that they don't rely in the future of bitcoin.

[n2004al]

Just came accross this (found on reddit):

http://www.nationnews.com/nationnews/news/74760/economists-suggest-bitcoin-reserve

...
The two, who have both served as head of the Barbados Economic Society and currently lecture at the University of the West Indies, Cave Hill Campus, said once more participants like Citibank “continue to enter the market and support transactions via the blockchain”, “the counter part risks to smaller and highly vulnerable central banks, such as the Central Bank of Barbados, will be minimised”.
...

Likely to heppen?
I wonder what would be the 'small' amount in terms of Barbados.

If the wrong is seen in the blockchain and the transaction on it I disagree with the above. Blockchain has nothing to do with the power of Central Banks of every country. Blockchain will not replace the national currency which is managed by the Central Bank. Blockchain can help in the more fruitful managment of this national currency. Will help the commercial banks to have less costs in managing this currency. Blockchain cannot be used from the commercial banks to create other coins which can put in risk the national currency and decrease or put in risk the role of the Central Bank of one country. Have no power to do this (by law) and even no interests. The only Authority which can produce/create/stamp new money/currency in one country is the Central Bank (or the similar Authority of it) of that country. So, even in this way, any kind of risk cannot be seen.

It is another thing if we talk about bitcoin. Bitcoin, if not controlled, can ever "destroy" (put out of effective monetary policies) one Central Bank if we are talking about countries with weak economy or undeveloped ones. Bitcoin can put in risk even other important economies but that are in crisis. The most clear example is Russia which has banned it exactly for this reason. The fear from it, from its increasing power. But which was unable to do the people to leave or abandon bitcoin. In Russia the bitcoin black market have sizes which create concerns to the Russian Government. Not surprisingly one of the members of Russian Government propose to put in jail all those who have to do or use bitcoin.

As for the use of bitcoin as a reserve in the Central Banks this is a big step ahead. But there must be much more before. Maybe I am not well informed but no one country has known bitcoin as a currency. How is possible then to be considered the option of being reserve currency in a Central Bank?

[mobnepal]

This is true positive steps that bitcoin is looking for. If the countries with small reserves start to take bitcoin as national reserve assets than other small countries will try to follow the same patern. Ultimately we may see bitcoin getting reserved as gold by most of the governments.

[el kaka22]

Small bitcoin reserve... I have just started my personal reserve in bitcoin (just moving my coins to another wallet which I won't spend) this week with my sig earnings, however it is only 0.003 BTC...

their total reserve in fiat currency and gold is around 700 or 800 million.

it won't have a big impact.

but, if more countries start adding bitcoin to their portfolio, it will cause a large impact on the price.

700M USD is more than 10% of existing bitcoins, or the trading volume of few days. So the impact in price even by this will be huge, maybe pushing the price to 500.

[AtheistAKASaneBrain]

I have been under the impression for a while that the entire Chinese nation being filled with the best farms in the game can't be a coincidence, and that those big farms are basically state funded undercover mining operations and the goverment is keeping a certain % of the gains made in those mines as a reserve vault. These guys are too smart to miss on the up and coming Bitcoin race.

[Kprawn]

The reason why they doing this, is the tax implications... they do not have Capital gains tax there, so it's better for them to transition to something with a possible lower tax

incentive. If other countries are smart they will follow this example and companies would relocate there, to take advantage of this. The unfriendly environment for many companies

in the USA {New York} with all their added tax and licenses, should consider what it's doing to their local economy. 

[LiteCoinGuy]

Small bitcoin reserve... I have just started my personal reserve in bitcoin (just moving my coins to another wallet which I won't spend) this week with my sig earnings, however it is only 0.003 BTC...

their total reserve in fiat currency and gold is around 700 or 800 million.

it won't have a big impact.

but, if more countries start adding bitcoin to their portfolio, it will cause a large impact on the price.

700M USD is more than 10% of existing bitcoins, or the trading volume of few days. So the impact in price even by this will be huge, maybe pushing the price to 500.

lol, 700mio in bitcoin would push the price alot higher than that.

[pawel7777]

The reason why they doing this, is the tax implications... they do not have Capital gains tax there, so it's better for them to transition to something with a possible lower tax

incentive. If other countries are smart they will follow this example and companies would relocate there, to take advantage of this. The unfriendly environment for many companies

in the USA {New York} with all their added tax and licenses, should consider what it's doing to their local economy. 

What are you talking about? This topic is about idea of creating small BTC reserve by The Central Bank Of Barbados. What does it have to do with CG or income tax?

[Denker]

The reason why they doing this, is the tax implications... they do not have Capital gains tax there, so it's better for them to transition to something with a possible lower tax

incentive. If other countries are smart they will follow this example and companies would relocate there, to take advantage of this. The unfriendly environment for many companies

in the USA {New York} with all their added tax and licenses, should consider what it's doing to their local economy. 

What are you talking about? This topic is about idea of creating small BTC reserve by The Central Bank Of Barbados. What does it have to do with CG or income tax?

How likely is this to become a real happening?
And how much is a small reserve? 10k coins? 100k coins?
Imagine this would really happen, Barbados as the first country becoming a BTC hodler!
This could have some serious impact for other countries to follow it.Even if it only would be the caribbean.
Too good to become true? *dreaming for a second*

[Yakamoto]

I would say that the only reason for some countries to have "small" reserves of Bitcoin would be a means of gathering value over time. Since inflation is always an issue, gold is expensive, Bitcoin has likely reached it's bottom line at $250, and Bitcoin doesn't look like it is going out of style, it would probably be a good investment for some smaller countries to have marginal reserves of Bitcoin hidden away.

The reason why they doing this, is the tax implications... they do not have Capital gains tax there, so it's better for them to transition to something with a possible lower tax

incentive. If other countries are smart they will follow this example and companies would relocate there, to take advantage of this. The unfriendly environment for many companies

in the USA {New York} with all their added tax and licenses, should consider what it's doing to their local economy. 

What are you talking about? This topic is about idea of creating small BTC reserve by The Central Bank Of Barbados. What does it have to do with CG or income tax?

How likely is this to become a real happening?
And how much is a small reserve? 10k coins? 100k coins?
Imagine this would really happen, Barbados as the first country becoming a BTC hodler!
This could have some serious impact for other countries to follow it.Even if it only would be the caribbean.
Too good to become true? *dreaming for a second*

1. Real thing? For a country like Barbados, it seems more likely than not. Larger countries, however, do not seem likely at this time.
2. As a government, they would probably picture a small reserve being 15k coins, maybe a bit less.
3. As for other countries feeling the impact, it wouldn't really matter unless Barbados benefits from Bitcoin in some large way.