Will North Korea introduce bitcoin as a settlement unit in their int'l trade?

[becoin]

Following latest round of sanctions even their biggest banks are now not able to transact internationally. North Korea is the only truly independent county. It is also independent from international banking oligopoly. They have nothing to lose. Introducing bitcoin as a settlement unit in their international economic relations is an exceptional opportunity for this country!

[franky1]

Following latest round of sanctions even their biggest banks are now not able to transact internationally. North Korea is the only truly independent county. It is also independent from international banking oligopoly. They have nothing to lose. Introducing bitcoin as a settlement unit in their international economic relations is an exceptional opportunity for this country!

north korea has full control of its currency. no manipulation by wall street. no IMF, no outside influence.

however. using bitcoin although still avoiding the 'elitist' manipulation of the fiat puppeteers. it then becomes reactive to natural economics of international barter. which is the other end of the scale, and can reduce their control based on being too open.

i dont think they will want to be controlled by the wall street elite.. or lose control by the open market. they will want to remain right in the middle of self control of their own currency.

that said the citizens will always find a way to barter with bitcoin, even if it involves under the table private blackmarket trading beyond korean government oversight

[Blawpaw]

cmon man... do you really think the country's dictator will allow anyone to use Bitcoin?
of course not... it would be something like using dollars as well!

[becoin]

cmon man... do you really think the country's dictator will allow anyone to use Bitcoin?
of course not... it would be something like using dollars as well!

cmon man... read my post above once again but this time sloooooooowly!

In their export/import economic activities they can NOT use their domestic currency unit (the won)!

[szpalata]

It will serve their own interest if they employ Bitcoin as a payment processor and use that as a bypass to their international sanctions but I don't know if their central bank will be ready to tolerate competition so it's up to them and their dictator.

[becoin]

It will serve their own interest if they employ Bitcoin as a payment processor and use that as a bypass to their international sanctions but I don't know if their central bank will be ready to tolerate competition so it's up to them and their dictator.

North Korea exports coal to China and gets paid in $$$. Why is their central bank "ready to tolerate competition" from the $ but won't from bitcoin?

[Gotottack]

It will serve their own interest if they employ Bitcoin as a payment processor and use that as a bypass to their international sanctions but I don't know if their central bank will be ready to tolerate competition so it's up to them and their dictator.

North Korea exports coal to China and gets paid in $$$. Why is their central bank "ready to tolerate competition" from the $ but won't from bitcoin?

First off, your avatar was annoying, I tried to kill the bug!

Anyway, about North Korea, they don't give a damn about the world and they will not be able to use those bitcoins in their country anyway. They don't have internet there as free as we have out here. I don't think their citizen will be freely be able to use it because it is actually against their very policies. Another point is that there is too little that accept bitcoins yet, and in a national/international scale, I don't see this happening yet.

[becoin]

Anyway, about North Korea, they don't give a damn about the world and they will not be able to use those bitcoins in their country anyway.

They will continue to use their currency (the NK won) domestically. Their exports are paid in $ by their int'l counter parties. If they switch from $ to bitcoin they'll prove sanctions that cut off their banks from the rest of the world are worthless.

[amacar2]

May be i am missing something but i think it will be hard for them to find legitimate bitcoin trading platform where they can sell their bitcoin for dollar. If they just make bitcoin as settlement unit with china in place of $ how they gonna be able to use those bitcoin for imports because i don't think other countries will be happy to sell their goods for bitcoin. 

[Red-Apple]

a country such as North Korea is mostly self dependent and they try their best not to have anything to do with the rest of the world! and for what they need they always find a way to do it with the good ol' US dollar so they can find someone who accepts it without hassle.
yes using bitcoin helps them in some stuff but who is accepting bitcoin? and they import goods and pay with bitcoin or export and ask the other country,... to pay them bitcoin and will They do it?
i don't think so. the volatility of price alone prevents it. and we are not talking about 1 or 2 btc worth, when it is a couple of million dollar worth, price going from 1250 to 1200 means losing a lot of money.

[becoin]

a country such as North Korea is mostly self dependent and they try their best not to have anything to do with the rest of the world! and for what they need they always find a way to do it with the good ol' US dollar so they can find someone who accepts it without hassle.

Are you saying "good ol' US dollar" bills in suitcases is more convenient method of payment than using bitcoins?

and we are not talking about 1 or 2 btc worth, when it is a couple of million dollar worth, price going from 1250 to 1200 means losing a lot of money.

But price going from 1200 to 1250 means making a lot of money.

[Carlton Banks]

Not particularly relevant ATM: China is overwhelmingly the only international trading partner North Korea have, and the PRC government recently reneged on a deal to buy coal from the North Korean government that constitutes a very significant amount of total North Korean international trade.

[Red-Apple]

a country such as North Korea is mostly self dependent and they try their best not to have anything to do with the rest of the world! and for what they need they always find a way to do it with the good ol' US dollar so they can find someone who accepts it without hassle.

Are you saying "good ol' US dollar" bills in suitcases is more convenient method of payment than using bitcoins?

it is more convenient, yes.
because first of all the volatility that i edit-added prevents them from wanting to use bitcoin.
second they are using US dollar. well i live in another country under sanction and i see them using US dollar through other weird channels to go around the sanction. and these days they are talking about switching to Euro

[becoin]

Not particularly relevant ATM: China is overwhelmingly the only international trading partner North Korea have, and the PRC government recently reneged on a deal to buy coal from the North Korean government that constitutes a very significant amount of total North Korean international trade.

Coal exports account for 35% of the entire NK export to China. The rest 65% remains to paid somehow!

[Carlton Banks]

Not only is the remaining 65% largely the Chinese government also, but one must ask "65% of what total?". Like someone else already said, North Korea don't trade internationally at all much. None of these changes, including using Bitcoin, is going to make much difference.

[becoin]

it is more convenient, yes.

I've always wondered what dollar cultists are doing on this forum?

because first of all the volatility that i edit-added prevents them from wanting to use bitcoin.

Firstly, bitcoin volatility can be easily hedged for every deal individually. Secondly, the price of this hedge is much lower than the price of dragging suitcases full of $ bills throughout different countries and paying for transport insurance, couriers and guards.

[becoin]

Not only is the remaining 65% largely the Chinese government also, but one must ask "65% of what total?".

And if one asks, how that helps in finding solution for those 65% if interbank payments are not allowed?

[Carlton Banks]

Your thread would be much more interesting if it were made about Iran instead, who are also cut off from international trade, and who actually have something to sell, lol.

No-one is going to be interested in North Korea using Bitcoin to settle trade, not least the North Koreans, not least because Western/external computer operating systems are banned in any case

[Red-Apple]

it is more convenient, yes.

I've always wondered what dollar cultists are doing on this forum?

i don't really know what it means but ok, i was never called that

Your thread would be much more interesting if it were made about Iran instead,

hehehehe. exactly

who is going to buy our oil for bitcoin? i can give you link to our government officials so that you can introduce them to each other

p.s. they are selling it for USD with ease.

[becoin]

Your thread would be much more interesting if it were made about Iran instead, who are also cut off from international trade, and who actually have something to sell, lol.

Since 2015 Iran is not under sanctions and can use their banks for international transactions as they wish. lol

Sanctions lifted after Iran found in compliance on nuclear deal
http://edition.cnn.com/2016/01/16/middleeast/vienna-iran-iaea-nuclear-deal

BTW, this threat worked for Iran by that time and a deal to lift sanctions was reached. In the deal it was explicitly written that Iran can not use gold and other alternative methods of payments for their oil exports!