Is there room for a State Run Cryptocurrency?

[abora]

Why not just adopt Bitcoin itself as a main currency? You could even set up a fractional banking system based on top Bitcoin. The first government to do this is going to have a huge economic advantage for the rest of this century.

You know, it's REALLY difficult to do FRB with Bitcoin, since you are REALLY relying on having more people funneling in Bitcoins. And guess what happens when some-one wants to withdraw? Either you start funneling Bitcoins out of other's accounts, and they're left with the IOUs. And what happens when they want to withdraw, etc. It's possible, but difficult.

That's why wallets were made, so people can be their own bank. And not have to go through the bureaucracy that comes with banks. And they can't be left with IOUs, ever. Either a Bitcoin is there or it's not.

Its plain and simple,Bitcoin
 can't be handled by any Central Bank.

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[tee-rex]

Its suicidal imo, when you cant even withdraw btc easily from ATMs, but why not? argentina is already done for.

Jersey (an autonomous island of the UK and a well established “tax haven”) is seriously considering Bitcoin adoption in the nearest future. 

The island has recently announced that it will become home to the first ever regulated Bitcoin fund, Global Advisors Bitcoin Investment Fund (GABI), as of August 1st. The fund has been certified by the Jersey Financial Services Commission and means that traditional investments types such as pensions can now be invested in Bitcoin and secured by the same security features in commonly used financial products

Senator Philip Ozouf, the Treasury Minister for Jersey, sees this opportunity very clearly and wants the island to pursue the innovation: “Our infrastructure of world-class financial services and digital expertise gives us the tools to be an early leader in the field. Innovation will be central to Jersey’s future prosperity. We are keen to support local businesses by helping to create a well-regulated and responsive environment for investment in the sector”.

http://www.cryptocoinsnews.com/news/jersey-become-worlds-first-bitcoin-isle/2014/07/11

Bali could already be getting there.
Jersey will have some catching up to do.

http://www.coindesk.com/bitislands-bali-bitcoin-paradise/

Well, let's just hope that some internationally recognized state will finally make one day Bitcoin its legal tender in the strictest sense of the word (that is a means of payment for "all debts, public charges, taxes, and dues").

[polynesia]

Well, let's just hope that some internationally recognized state will finally make one day Bitcoin its legal tender in the strictest sense of the word (that is a means of payment for "all debts, public charges, taxes, and dues").

Yes, Instead of 'dollarizing' a country, let us hope they 'bitcoinize' it. 

[Unluckyduck]

If each country adopted its own coin then it would remove one of bitcoins greatest features which is that it is an indiscriminate, borderless currency.

[rugrats]

Its suicidal imo, when you cant even withdraw btc easily from ATMs, but why not? argentina is already done for.

Jersey (an autonomous island of the UK and a well established “tax haven”) is seriously considering Bitcoin adoption in the nearest future. 

The island has recently announced that it will become home to the first ever regulated Bitcoin fund, Global Advisors Bitcoin Investment Fund (GABI), as of August 1st. The fund has been certified by the Jersey Financial Services Commission and means that traditional investments types such as pensions can now be invested in Bitcoin and secured by the same security features in commonly used financial products

Senator Philip Ozouf, the Treasury Minister for Jersey, sees this opportunity very clearly and wants the island to pursue the innovation: “Our infrastructure of world-class financial services and digital expertise gives us the tools to be an early leader in the field. Innovation will be central to Jersey’s future prosperity. We are keen to support local businesses by helping to create a well-regulated and responsive environment for investment in the sector”.

http://www.cryptocoinsnews.com/news/jersey-become-worlds-first-bitcoin-isle/2014/07/11

Bali could already be getting there.
Jersey will have some catching up to do.

http://www.coindesk.com/bitislands-bali-bitcoin-paradise/

Well, let's just hope that some internationally recognized state will finally make one day Bitcoin its legal tender in the strictest sense of the word (that is a means of payment for "all debts, public charges, taxes, and dues").

I think it's important to distinguish between Bitcoin being used a token and a proper currency. With the former, coins would be converted to fiat at the first opportunity. Not saying that's a bad thing, but being accepted as an intermediary token is different from being accepted as a functional currency.

[polynesia]

If each country adopted its own coin then it would remove one of bitcoins greatest features which is that it is an indiscriminate, borderless currency.

Bitcoin would still be the 'USD' to all the different countries' coins.

[taylortyler]

It's obviously far from a cryptocurrency in principle and function, but the only similarities I can foresee are the similar cryptographic technologies that Ecuador might use. I'm curious as to what they might be.

[botany]

It's obviously far from a cryptocurrency in principle and function, but the only similarities I can foresee are the similar cryptographic technologies that Ecuador might use. I'm curious as to what they might be.

We could have me-too currencies from all the failed economies if this takes off.