Bad ideas are not uncommon, yet projects based on bad ideas are launched all the time, often with very costly results. MintChip was an interesting but still a bad idea. At least the Canadian government recognized it early enough and humble enough to give it up. Scotland will not be the last nation tempted to create their own digital currency. It is a very tempting concept for politicians to create money at the push of a button. Personally, I believe that the associated risk for any single nation to create their own digital currency is so high, taking it seriously should be construe as irresponsible. Any significant mishap could cause its citizens to lose their life savings.
Whether it is Bitcoin, DNotes, or another digital currency, being a decentralized digital currency not owned by a single nation or entity is the commanding characteristic that makes it potentially superior to fiat currency. Being a global, instead of a localized currency, makes a world of difference in spreading its value and risk, avoiding the possibility of a catastrophic collapse.
We, at DNotes, strongly believe that the best solution is to create a privately held company with sufficient self-interest to promote and protect the best interest of DNotes as a trusted global decentralized currency for everyone worldwide to participate. DNotes will own up to 25% of this company. This is our mission and we are passionately committed to DNotes to be worthy as a supplement to any national or fiat currency.
Chris did an excellent job. A must read for everyone:
“But while MintChip had many positive attributes, it rather missed the point of true cryptocurrencies. First, value was injected into the system, and controlled by, the Royal Canadian Mint at all stages. This value was not inherent to the cryptocurrency, but was subject to the fluctuations and exchange controls of the Canadian Dollar. MintChip’s utility was therefore limited to being a digital medium of exchange for use within Canada’s borders. True digital currencies, however, represent a store of value and medium of exchange that is independent of the prohibitive transaction costs and the many issues associated with exchange rates. Thus, true cryptocurrencies go a long way to circumventing the barriers presented by national borders, globalizing small-scale transactions and representing an opportunity to make international trade cheaper, easier and more democratic. Without these global advantages, MintChip could only offer a small sample of the advantages associated with Bitcoin, DNotes and other cryptocurrencies.”
Read More:
http://dcebrief.com/missing-the-point-mintchip-scotland-and-the-spectre-of-government-issued-cryptocurrencies/