Topic: First Country, Which Will Start Using Crypto As Official FIAT - Which One ? (Read 249 times)

I'm not sure. If I was to guess I'd say maybe Malta? Japan? It's hard to say.

to fully use crypto and not FIAT anymore: not sure if it'll really happen
I think both systems will coexist in the future
but there are projets already in Japan where they plan to launch digital currencies for wide adoption:

Japan wants to launch a new digital currency: J-Coin

Venezuela is one country already doing this. Others will key into crypto adoption in the near foreseeable future as well. And I believe some countries in the middle East like UAE, Turkey, Iran, and Qatar will do so.
If Venezuela succeeds, their success will trigger a mass acceptability and adoption of cryptocurrency by many nations, particular those whose GDP is heavily dependent on crude oil. That's how I look at it.

Addition to Venezuela i read somewhere about Dubai also planning to make it crypto(Although im not sure 100%).

yes that is true, Venzuela introduced the Petro coin which is a cryptocurrency with a limited supply and attached to the price of oil. It is supposed to replace the current currency Bolivar which has inflated to almost 1 million percent. However this is not a good example for two reasons. Next to the crypto currency will be also a traditional currency which is called the petro dollar. Also this will be attached to the price of oil. So it is actually a hybrid model, rather than that a fiat currency completely gets replaced by crypto. In addition to that, Venezuela has been quite harsh on crypto currencies, miners went to prison for abusing electricity, and the approach of the new currency is more a desperate act to stop the hyperinflation.

Here is a better example: Estonia

This small country is one of the most leading in terms of startups, it has mire percent of startups than any other country, the government is very open towards new tech and innovation and the city Tallinn is already a hub for blockchain companies. A while ago there were even plans to introduce a state issued crypto currency. These plans have been discarded though. In my opinion, there was peessure from the EU to let it go as it would have weakened the Euro. So if these forces were not at play, Estonia was probably the first country in the world.

Here is a source: https://www.worldfinance.com/markets/estonia-pushes-ahead-in-race-to-issue-first-state-backed-cryptocurrency

In my opinion, cryptocurrencies would do nothing for Venezuela. The problem with inflation lies not in the currency, but in the government behind it. Large government spending on welfare and other programs created a large demand for money, without actually having the necessary supply. Next step they took was printing money to cover their debts and expenditures and that's how inflation is born. The problem with inflation is, that once you realise you have a problem, it's already too late. Couple that with corruption, weak monetary and fiscal policies and you've got yourself a crisis.

Along with all of the above, Venezuela's economy is in a bad state, relying on oil as much as possible, so issuing a cryptocurrency backed by oil is a horrible idea. That's the last thing they need.

Venezuela is going to need a long time of recession in order to combat this inflation, coupled with restrictive monetary and fiscal policies. It's a hard path to take, but one that is inevitable in such a situation.

Venezuela's economy has a long way to recover and there is no easy way to do it. If you think issuing a cryptocurrency can save a nation, then you've got a lot of reading to do.

The old Venezuelans will do this because related to the economy that occurred in their country but until now there has been no further news about the plan, maybe it's related to some weaknesses in crypto currencies, especially fluctuating prices that are very dependent on investor interest and very different with a currency in general which refers to the price of gold or oil. so I think the country is approaching for crypto use as a legitimate medium of exchange, it's possible the United States, with the SEC's requirement to immediately approve ETFs for Bitcoin

that was exactly what I was thinking. Inflated FIAT currencies will lead their countries to crypto. my first guess was one of the troubled south American countries like Argentina or above mentioned Venezuela. Or maybe Zimbabwe.

I guess it is not Zimbabwe after all, I found this Time article, which discusses Venezuale vs Marshall Islands as first country to accept Crypto as their national currency. interesting read.

in my opinion marshall islands made a mistake with the token supply and token split. they want to mint 24mln tokens and give half of it to company that is helping them with their launch. Half of their share (6mln) they plan to sell to investors. Leaving them with only 6mln tokens. Meaning that the supporting company will own majority of the country's future currency  I find that weird. anyway, here's the article

http://time.com/money/5186316/this-is-the-first-country-to-adopt-a-cryptocurrency-as-its-official-currency/

If i'm not wrong, the Venezuelean government already issued their own token a while ago. Therefor making it the first government issued token, which was backed by barrels of oil. Mainly countries which highly inflated fiat are looking into these options I guess

Which country will be the first one to start use crypto as official FIAT ? I think it will be small country, like Tuvalu, Nauru or Marshall Islands.