Government issued crypto - FTC's place in this hypothetical
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www.fxstreet.com/analysis/daily-pfennig/2014/02/19/
Guy’s talking about a scenario where China is potentially some day utilizing either SDR’s or a gold-backed renminbi to counter USD inflation.
Anybody think we see a small country go completely crypto in the next few years - a state sponsored digital currency mandated for use? The government would have to issue a new coin obviously pegged to their current fiat currency until perhaps eventually it was their new crypto coin pegged to another crypto.
How would FTC react to this scenario? How would it take advantage? Would it be the middle man currency between this country doing business with the rest of the world? The “bridge currency”?
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http://www.store.reading.ac.uk/browse/extra_info.asp?compid=2&modid=2&deptid=20&catid=5&prodid=354
This is where FTC belongs, but on a global scale. Yes, I very much think a country could adopt its own, but to do so would be quite difficult… I think it would all have to be pre-mined, and then residents could exchange their fiat for their right share of coins at a fixed rate. Else you run into a major, potentially anarcic, ‘gold rush’ which leaves some people worse off.
Does that make sense? It makes sense in my head, but I’m struggling to write it down…
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In theory you could have a small pre-mine and distribute these coins for fiat to begin with then allow mining etc to help promote the blockchain and also help increase price. With the mass use of the crypto the price would likely be quite stable. Any small variations would be set upon by people who know that some shops have fixed prices and wont be able to change fast enough (see large corporations e.g. mcdonalds etc.) who increase each year/quarter rather than on an ad-hoc basis.
