National currency

[Vernon715]

Just a random question, how could a country set up their financial system so that bitcoin was their national currency?

[1715079959]

1715079959

[1715079959]

1715079959

[1715079959]

1715079959

[stevegee58]

Why would a country do that if they can just issue a fiat currency?

Also, the viability of a currency is based on on the acceptance of a population.  For instance in Eastern Europe during the Soviet era, the official currencies were only used for visible, above-board transactions.  In the huge black market that flourished alongside the "normal" market, the only accepted currency was USD (then considered the safest, most fungible currency).

If people have confidence in a currency that's what they'll use.  BTC knows no national boundaries as long as the internet exists.

[Vernon715]

Why would a country do that if they can just issue a fiat currency?

Also, the viability of a currency is based on on the acceptance of a population.  For instance in Eastern Europe during the Soviet era, the official currencies were only used for visible, above-board transactions.  In the huge black market that flourished alongside the "normal" market, the only accepted currency was USD (then considered the safest, most fungible currency).

If people have confidence in a currency that's what they'll use.  BTC knows no national boundaries as long as the internet exists.

What I meant was if a new country wanted to use BTC, how would they begin?

South Sudan would be a good example of a new country.

[stevegee58]

An electronic currency is only useful to people with computers and internet access.

[markm]

Maybe you could start of by having your Freeciv nation - since all nations are represented in Freeciv and if yours is not then that should be rectified anyway - issue a blockchain game-currency and participate in a multiational game with other such nations' players, establishing your currencies in the game to such an extent that, like WoW gold and EVE whatzits and various other examples Google might well be able to tip you off about, the currency starts being used in applications beyond the ["alternate reality"] game...

...Continue, demostrating whatever form of patriotism your "planet known as Earth" nation-mates find appealing and championing their national myths dreams and ideals in the ["alternate reality"] game realm, until your "game currency" becomes so well established and so dear to the hearts of the V people that it is a "real contender"...

-MarkM-

[Vernon715]

An electronic currency is only useful to people with computers and internet access.

In this situation some sort of physical bitcoin could be used.

[ribuck]

What I meant was if a new country wanted to use BTC, how would they begin?

The government of that country would announce that they would accept payment of taxes in BTC, and would be making all of their payouts in BTC.

Nothing else would be needed. It's not like they would need to get Gavin's permission or anything.

[stevegee58]

An electronic currency is only useful to people with computers and internet access.

In this situation some sort of physical bitcoin could be used.

The second a physical currency note or coin is issued it becomes fiat money, even if it's ostensibly backed by gold or BTC.
They could print/mint more money and who'd be the wiser?  Sudan is a 3rd world country.