Which country might switch to BTC?

[pvoltaire]

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

There are currently more than sixty countries who do not have their own currency listed on wikipedia https://en.wikipedia.org/wiki/Dollarization These are governments who don't think it's worth the hassle of printing and managing currency just to have a few extra economic controls.

Some countries, like Somalia, could obviously benefit, but lack the internet infrastructure. There's been a lot of talk about Argentina for example, but I know next to nothing about them. What if a private army like the infamous Kony started using it? Again, infrastructure is an issue. Maybe a rich region could declare independence from a poorer capital, and switch to BTC?

Any ideas?

[balanghai]

Well it's not going to be like that. There are central banks at each country regulating the currency and inflation rates. And it would make their constitution void if they'd do that. But it could be used by the citizens as a secondary if not primary currency. Also you might want to study cambodia, they're using US Dollars in street shops and using their own currency for the small change. It could be similar to that.

[pvoltaire]

I don't think you read my post very carefully. Check the Wikipedia link. There are 60 countries that DO NOT HAVE THEIR OWN CURRENCY. Therefore they cannot manipulate it to influence their economies.

Take Liechtenstein for example. Liechtenstein has a central bank, but they only hold gold and Swiss Francs. The Liechtensteinische Landesbank can't influence cash supply or monetary policy already! Again a Wikipedia link to back this up: http://en.wikipedia.org/wiki/National_bank_of_Liechtenstein#Cash_supply_and_distribution

Now, I don't think Liechtenstein is going to move away from CHF (or gold), but some countries with less stable economies might.

[Lohoris]

There's been a lot of talk about Argentina for example, but I know next to nothing about them.

There's a lot of talk about Argentina because they have very strict dictatorial policies about money, so some people are starting to use Bitcoin: quite the opposite of what you were seeking.

but some countries with less stable economies might.

Why and how should they do that?

How - if they already have an unstable economy, chances are they aren't skilled enough for the task, let alone do something completely new!

Why - what would they gain by accepting bitcoins, as opposite to accepting dollars?

[pvoltaire]

There's a lot of talk about Argentina because they have very strict dictatorial policies about money, so some people is starting to use Bitcoin: quite the opposite of what you were seeking.

Thanks for the info. Let's agree not to mention Argentina again. Let's talk about a small pacific country with a relatively centralized population, say Cook Islands or Nauru. The higher population density would make the communications infrastructure more practical.

How - if they already have an unstable economy, chances are they aren't skilled enough for the task, let alone do something completely new!

I said "less stable than Leichtenstein", you are really twisting my words to make that mean "unstable"! According to rumour, Leichtenstein is still holding onto copious amounts of Nazi gold. I don't think there are many economies that are more stable than Leichtenstein.

Why - what would they gain by accepting bitcoins, as opposite to accepting dollars?

The same reasons anyone accept bitcoins? If they already don't have their own currency, what would they have to lose?

Here are some possible benefits for a state:
* Save money on the transportation and storage of physical currency
* Strip the anonymity away for strong tax control(?)
* Frictionless international trade without tariffs
* circumvent embargoes.
* end counterfeiting
* boost IT and communications infrastructure

I have never been the manager of a reserve bank, so I can't confidently say which of these are serious problems, or what other problems reserve banks suffer. If I were made manager of a reserve bank, I would certainly look into cryptocurrencies, and probably get beautiful young girls to dance for me while I did it.

[evansearle42]

Out of all, zimbabwe seems to have the highest chances to switch to BTC for its own currency, since they aren't using their own currency anyway..

[pvoltaire]

Here's another suggestion from studying the list on Wikipedia: Gaza Strip. It has the high population density, very small, trust of government is low, there's a desire for more freedom in imports, they're poor, but I don't think they're too poor.

[oyeTorry]

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

No one and for very long. One of the reason is only small % of people are able to use computer and even smaller internet.

[BitcoinWalker]

No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

[pvoltaire]

No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!

[udet4food]

No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!

But their banks still use fraction reserve banking, right ? So whats the difference if these countries have own currency or not 

[Lohoris]

But their banks still use fraction reserve banking, right ? So whats the difference if these countries have own currency or not 

And...?
You can use fractional reserve even with bitcoins, or with apples and oranges, for that matter...

[pvoltaire]

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

No one and for very long. One of the reason is only small % of people are able to use computer and even smaller internet.

Check out the demographics information on Gaza Strip. They have a literacy rate of 99%, and five universities for a population of 1.6 million. The population density is so high, that mobile phone connections are sure to be good, and you don't need a full node to buy and sell!

[BitcoinWalker]

No governments ever want to give up their printing power. The question is: How will Bitcoin gain acceptance from governments and mainstream companies?

Amazing how few people actually read what I posted. There are SIXTY countries who do not have "printing power" to give up!

Well, you should understand 'printing power' in a broader sense. Even if some governments don't print their own currencies, they will exert their powers on capital flows no matter which currencies they choose to use. Bitcoin poses a serious challenge to this end.

[mobile]

I remember an article way back about some african country being a  prime canadate to have widespread bitcoin adoption. I think it was Kenya. I writing via a mobile device so I can source that article you for you but thats my 0.002BTC's

[BitcoinWalker]

I remember an article way back about some african country being a  prime canadate to have widespread bitcoin adoption. I think it was Kenya. I writing via a mobile device so I can source that article you for you but thats my 0.002BTC's

Sounds like Somalia could go first. Pirates in Somalia could then demand ransoms in Bitcoin 

[MAbtc]

No sovereign government will give up their right to print money. That's the type of thing that governments don't do -- it is virtually their greatest power.

[hayek]

Stop thinking in terms of countries.

Bitcoin is much bigger. Where we are going we don't need countries.

[cr1776]

Just a point of interest: Panama does not have a central bank.  So they do not have that entity to protect.

(e.g.  http://mises.org/daily/2533   )

Well it's not going to be like that. There are central banks at each country regulating the currency and inflation rates. And it would make their constitution void if they'd do that. But it could be used by the citizens as a secondary if not primary currency. Also you might want to study cambodia, they're using US Dollars in street shops and using their own currency for the small change. It could be similar to that.

[cointraffic]

No sovereign government will give up their right to print money. That's the type of thing that governments don't do -- it is virtually their greatest power.

Well some countries don't have the ability to print money already. But before any country will consider switching to BTC many years will pass.

[Lohoris]

No sovereign government will give up their right to print money.

it's sad how many people fail to read the first post, let alone the whole thread...

[WishIStartedSooner]

A country that doesn't have any centralized regulation control institute.
Maybe some africa countries!

[BitcoinWalker]

A country that doesn't have any centralized regulation control institute.
Maybe some africa countries!

You name it 'the united states of africa'.

[leus]

Guys,
I recommend you to read Milton Friedman's Money Mischief. He wrote the book in early 90's suggesting that next currency will be made of computer bytes. He was very right in his suggestions. One day we will be paying virtual currency all over the world, I believe. Any Government will not accept that voluntarily, because they strive to rule and make money for them selves. They will try to ignore it but when they realize that money they have been printing eventually does not have any value, it will be too late for them. I am not communist nor socialists but can you imagine world without central bankers with hefty bonuses? It cannot be stopped now. It is too late. Great New World   

[EccLipSe]

It is freedom without actual financial system. Please watch below video and you will see what happens and what we will get after freedom from cental bank system.

http://www.youtube.com/watch?v=iFDe5kUUyT0&feature=share

[BarkinTree]

btc goes against a very important power of government that it does not want to lose. this does not make sense unfortunately.

[exstasie]

What about Iceland?  We know that they've had 'some' issues with the stability of their economy.  Plus Iceland seems to more progressive in their thinking and policies, so who knows!  Maybe they'll complete eliminate physical currency!

[forbun]

btc goes against a very important power of government that it does not want to lose. this does not make sense unfortunately.

BarkinTree is wrong. As OP stated, many governments don't print their own currency. I think this makes great sense.

[CryptoCrazy]

It is freedom without actual financial system. Please watch below video and you will see what happens and what we will get after freedom from cental bank system.

http://www.youtube.com/watch?v=iFDe5kUUyT0&feature=share

wow, great video.

[wmcleod]

I personally do not think any country will switch their formal denomination to Bitcoin.  Perhaps an alternate coin, but not Bitcoin.  Bitcoin is becoming entrenched with the exact notions nation-states inherently avoid (anonymity, decentralization, to name a few). 

This is just my personal opinion though.  I recognize that in the last few years we've heard rumblings of failed nation-states adopting Bitcoins as their national currency but nothing ever came to fruition (probably for the best).

[cryptoanarchist]

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

There are currently more than sixty countries who do not have their own currency listed on wikipedia https://en.wikipedia.org/wiki/Dollarization These are governments who don't think it's worth the hassle of printing and managing currency just to have a few extra economic controls.

Some countries, like Somalia, could obviously benefit, but lack the internet infrastructure. There's been a lot of talk about Argentina for example, but I know next to nothing about them. What if a private army like the infamous Kony started using it? Again, infrastructure is an issue. Maybe a rich region could declare independence from a poorer capital, and switch to BTC?

Any ideas?

This is dumb. Cryptocoins are for individuals, not "countries".

[wmcleod]

One of the potential causes for an explosion in the price of BTC would be if a country decided they wanted use it as the national currency. What countries do you think are potential candidates?

There are currently more than sixty countries who do not have their own currency listed on wikipedia https://en.wikipedia.org/wiki/Dollarization These are governments who don't think it's worth the hassle of printing and managing currency just to have a few extra economic controls.

Some countries, like Somalia, could obviously benefit, but lack the internet infrastructure. There's been a lot of talk about Argentina for example, but I know next to nothing about them. What if a private army like the infamous Kony started using it? Again, infrastructure is an issue. Maybe a rich region could declare independence from a poorer capital, and switch to BTC?

Any ideas?

This is dumb. Cryptocoins are for individuals, not "countries".

That's a rather ignorant assertion.  Cryptocoins could very easily be integrated into a nation's formal currency.  This wouldn't undermine altcoins in the slightest.

[johncarpe64]

Zimbabwe!!! They aren't using their own currently anyway might as well change to Bitcoin or gold....

[InwardContour]

btc goes against a very important power of government that it does not want to lose. this does not make sense unfortunately.

BarkinTree is wrong. As OP stated, many governments don't print their own currency. I think this makes great sense.

are there any with any amount of power in geo-political terms? that's what i would like to know.    if not, maybe he is not wrong, per se.

[Shallow]

A country that has a heavily devalued dollar might make the switch.

[cryptoanarchist]

That's a rather ignorant assertion.  Cryptocoins could very easily be integrated into a nation's formal currency.  This wouldn't undermine altcoins in the slightest.

By countries you refer to government, which bitcoin was designed to do away with. Countries can't adopt bitcoin because they wouldn't be able to forcifully extract wealth from its slaves ('citizens') if it did.

[reannypleas]

Countries can't adopt bitcoin because they wouldn't be able to forcifully extract wealth from its slaves ('citizens') if it did.

They can, you always have some physical asset. You can use coupons already in your shop, it is not much different from Bitcoin.

[adicted]

may be each country will use dif coin in the end for currency

[leus]

Currencies are just papers which are very cheap to produced. They have value only because people believe that they have value. They believe they have value because they had experienced that they have had value. Consider island of Yap. Small island in the Caroline Islands of the western Pacific Ocean which is known for its own currency - stone money. So as long as people believe in bit coins / alt coins they can become base currencies in the passage of time. If stones work why not computer bytes?

[BTC_GHD]

Well Germany has had some stuff going on with BitCoin http://www.cnbc.com/id/100971898
so who knows maybe they will

[fred1111]

What might happen is that a country would issue a currency backed by Bitcoin instead of Gold for example.

Muslim countries are also good candidates because debt-backed currency is not in accord with Sharia law that prohibits the charging of interest.

[Open4lies]

Well Germany has had some stuff going on with BitCoin http://www.cnbc.com/id/100971898
so who knows maybe they will

Legalize using bitcoin or Banks including BTC services is completly different from switching Euro to BTC - switch Euro to BTC will not happen