Is there any chance of having any "fiat" like system that is backed by Bitcoin?

[chennan]

I know that central bankers and people in power are not going to want anything like this to come to life; but I would like to think of a world where this is possible.  Even if it's just entertaining the idea and nothing will come of it.

I mean theoretically it could be done though.  In past human history, and even recent history, banks would have notes that would represent, or guarantee the person accepting the note, that it would be redeemable to get X amount of gold or silver for that note and or currency in general.  It worked for a while, until governments and banks had the incentive to keep the precious metals for themselves and overprint their currency to help fund wars, or "pay off debts", etc; thereby making people placing value in the notes in terms of having "trust' in the American/global economy.

Now what would happen if you could create a fiat system where you could just strap the gold or silver to the note itself?

Would it technically be possible to have a system in government where we send Bitcoin, or even another cryptocurrency, to an address that is attached to the note it self?  

I know that there are already things that have been created for stuff like this; such as OpenDime and Satoshi Notes.  But, I'm curious as to what you guys think would be a "do-able system" if something like the fiat system were to collapse and there were need for a new currency for the masses... since block size limits probably wouldn't allow for that high of tx/sec.

[Xester]

I think it is not possible at this point of time that fiat currency be backed up by bitcoin. But i have my own view, a currency online that will represent the actual value of fiat currency in the real world.

But your idea can be done and it is possible, but the question is when will it happen or when will society be ready to such kind of financial systems. Only time will tell I guess.

[erpbridge]

No because bitcoin isn't centralized. Who would be the publishing authority ? The current system of fiat system wouldn't allow this to happen either. All those hacks/Problems would simply not let the system of fiat sustain.

[densuj]

I don't think so because as we know fiat money is be controled by government and people who has power everything depend on leaders, although it can do will become hard because of still there are problem for control amount of printing fiat money and every people can not see it. Will be difficult for transparency from government to their people.

[franky1]

near on 100 international banks are already dveloping their crypto currency.

research hyperledger.

[Jet Cash]

It won't be backed by Bitcoin. There may be gold backing for the Ruble or Renminbi.

I looked at the new British £5 note, and I wondered how easy it would be to include a readable identification number in future versions. This would make it easy for governments to "mine" new notes, and to create a blockchain tracking its path through the economy. Would this be the end of "cash" deals - probably not, but it would give governments another tool to help track down tax evaders.

[xdrpx]

Because the banks and Central Government are pro-centralization and against decentralization they'll never prefer to integrate with Bitcoin that easily. (I'm sure there could be a few exceptions like the Standard Bank investigating on switchless Bitcoin and another called USAA that has integrated Bitcoin). Considering that many people have garnered information on Bitcoin and started to accept it, over time Banks have realized that this could be dangerous for them and have secretly started researching on Blockchain technology to implement their own Crypto currency for their already existing customers which could be delivered to the masses over night. This could be a threat to Bitcoin, but Bitcoin will always be decentralized no matter what happens and the banks know of this.

[franky1]

over time Banks have realized that this could be dangerous for them and have secretly started researching on Blockchain technology to implement their own Crypto currency for their already existing customers which could be delivered to the masses over night. This could be a threat to Bitcoin, but Bitcoin will always be decentralized no matter what happens and the banks know of this.

its no secret.
hyperledger.

they have been very public about it.
oh and guess who is programming it.. blockstream, yep. gmaxwell and chums.

[dothebeats]

near on 100 international banks are already dveloping their crypto currency.

research hyperledger.

Nice read on the hyperledger, but apparently I cringe on the idea that banks participate in an "open-source, collaborative" effort to create a system which will back each industry up in the near future. As per the OP's view, it's not possible. First off, how would bitcoin back fiat in any way? Shouldn't it be the other way around? Second, authority, regulation and control—bitcoin doesn't have those. How would we, as a community, do desicion-making on fiat events? Consensus? Lol.

[BingoDog]

No, I.don't think so that fiat could be ever backed up Bitcoins.
Fiat has central banks and governments behind and Bitcoin is decentralised system so these are two opposite things. But banks are interested to use blockchain technology for fiat.

[franky1]

near on 100 international banks are already dveloping their crypto currency.

research hyperledger.

Nice read on the hyperledger, but apparently I cringe on the idea that banks participate in an "open-source, collaborative" effort to create a system which will back each industry up in the near future. As per the OP's view, it's not possible. First off, how would bitcoin back fiat in any way? Shouldn't it be the other way around? Second, authority, regulation and control—bitcoin doesn't have those. How would we, as a community, do desicion-making on fiat events? Consensus? Lol.

banks and bitcoin wont mix.
banks wont offer bitcoin at the bank teller counter or a banks own ATM

bitcoin wont overtake fiat.
bitcoin will continue separate as an alternative to FIAT2.0 (hyperledger)

there are laws to keep fiat dominant. such as tax and minimum wage laws (legal tender) that are there to keep fiat as the controlling circulated currency of a nation.

the banks will basically switch how their database is stored, (via hyperledger) but essentially from the citizens point of view nothing will really change legally/morally. it will still be bank managed funds.

as for the "open source" nature of hyperledger. thats just phase one.. get some free labour and recruit coders (like blockstream already got recruited) .. but the final "product" wont be open source, it will be closed source in shiny metal boxes sold as secure nodes to only the banking community who are authorised to purchase the closed end product system

[mindrust]

In order to do that, you need majority to use bitcoin as an everyday currency. Unless it happens, it is not possible.

Bitcoin is already backed by the FIAT system. If anyone says the otherwise, he/she is lying.

If you want to use FIAT backed by bitcoin, just use USD. It backs everything out there.

[nealvanessa990]

Bitcoin has no chance to be fiat.No authority has control over bitcoin,bitcoin isn't centralized so give bitcoin alone his way.gold or silver also not fiat.I was talked with bitcoin dev they also said Bitcoin has no chance to be fiat.

[pereira4]

It is perfectly possible, not today, but it will be once we have sidechains and lightning network. A country will be able to create their own crypto, and give them the properties that the government in question wants, and ultimately it's all backed by bitcoin. I think this is what we will see in the distant future, but of course there is always the possibility that governments don't want to do anything to do with bitcoin and create a thing that is totally separated from it.

[franky1]

It is perfectly possible, not today, but it will be once we have sidechains and lightning network. A country will be able to create their own crypto, and give them the properties that the government in question wants, and ultimately it's all backed by bitcoin hyperledger. I think this is what we will see in the distant near future, but of course there is always the possibility that governments don't want to do anything to do with bitcoin and create a thing that is totally separated from it.

bank of england, scotland, canada, america, switzerland, india, china, singapore, australia, taiwan, russia, germany and many others are already involved in hyperledger.

aswell as international payment/remittance services like union pay, visa etc etc.

as for when..
well they have already passed what bitcoiner would call the "bitcoin pizza event"
http://www.reuters.com/article/us-australia-tech-banks-idUSKCN12O0DX

australia trades 88 bales of cotton to china for $35,000 using the blockchain created by the banking cartel under the hyperledger umbrella

[yayayo]

One of the major reasons for the invention of (gold-backed) fiat money was the insufficient supply of precious metals that led to coin shortage. After medieval times and discovery of the New World the economy of European States saw significant growth. Population also started to grow much faster than in the old times. There weren't enough coins to keep up with these developments. That's why paper money and later fiat money were a convenient solution.

It makes no sense to start a fiat system based on Bitcoin, simply because Bitcoin is infinitely divisible (with precision updates). You don't need to install a secondary money system to allow for uninhibited capital flow. With Bitcoin, there will never be a shortage of mediums of value.

ya.ya.yo!

[amacar2]

I see two things that exist right now and can be considered similar to this idea.

Paper wallet - it can be printed have value and secured by private key just like in fiat paper money it was secured by code number, hologram and sign of governor.

Tether (https://tether.to/) - backed by real cash in banks but works on bitcoin sidechain and have similar structure and transaction like bitcoin.

[Kprawn]

Well Hyperledger seems to be the hype these days, but I think Ripple will be more than willing to sell out to anyone that can offer them

money and profits. The thing is, Fiat is evil and everything associated with it will go down. It is like driving around with a Vintage car, because

it attracts attention for the novelty... not the practicality. 

[jak3]

i somewhat tjinking the same idea as op since op is very high ranker than me anyway strainght comming to the point the government is not trying to become so advance like bitcoin they can not just scrifile all their privacy but they do try to improve themself on the governmental levels but bitcoin has no rules and autorities so its free to be treated as whatever we want

[chennan]

In order to do that, you need majority to use bitcoin as an everyday currency. Unless it happens, it is not possible.

Bitcoin is already backed by the FIAT system. If anyone says the otherwise, he/she is lying.

If you want to use FIAT backed by bitcoin, just use USD. It backs everything out there.

This is the main thing I want to point out.  What I was trying to say in the OP, is what would happen if the USD and every other fiat system collapses.  I would imagine it would be pretty hard to have a fiat currency, such as USD, to go from representing nothing to representing either gold, silver, or Bitcoin.

So with that being said, I'm curious as to if creating a new "fiat-like" paper/physical currency would be feasible.  I know something like this is a total long shot of actually happening, but I mean hey, Donald Trump is the US president for god sakes...

And the reason as to why I think it would be necessary to have Bitcoin be in physical form on either paper backed currency, or whatever, is to help with microtransactions and not over load blocks; plus it will prevent having people having to wait for 2 hours to get 1 confirmation to get their cup of coffee or whatever.  Then in that instance, you can have larger volume type transactions and/or transactions going across international borders be used on the actual Bitcoin network.