1. Buy some BTC.
2. Announce conversion date 2 yrs in advance.
3. Educate public (no tax breaks for mining wtf does that help??)
4. Give BTC for old currency at a set (favorable) rate.
I think it would be insanely profitable for a country to do this.
But wouldn't that mean that just upon announcement, the value of fiat will instantly plummet? I just don't see the the incentive for bitcoin sellers to this country.
1. Your scenario's 1 and 2 happens
2. I sell bitcoins for their fiat..
3. I hold the country's fiat that they do not wish to hold, seeing as they want btc
4.
5. broke
1. They have to buy some BTC using $$$ or euros or by selling gold. If you sell the CB some BTC you get hard currency back.
2. For their people they guarantee a conversion rate for their old dying fiat. i.e. xxx old fiat for 1 BTC.
It's do-able. Lots of detail, but doable.
2. For the people, they guarantee 1 BTC for for X deprecated fiat.
3. Sellers of BTC bump BTC ask price to >X, knowing that this time, profit is assured.
3a. Having sold 1 BTC for 2 X, they convert each X to 1 BTC, for 2 BTC total (capitalising on the government guarantee). Rinse & repeat.
4. ? ? ?
5. broke.
Alternate take:
2. Let's assume the government is clever, and only converts each note once by scribbling "VOID" on the face of each bill in permanent red marker.
3. Sellers of BTC are also not stupid, quickly catching on that bills with red "VOID" aren't the same as unvoided bills, since the also not stupid storekeepers won't take them. The Greater Fool paradigm instantly runs out of greater fools, voided bills are worthless for anything but paying taxes, and are sold for pennies on the dollar.
3a. Bitcoin sellers jack BBTC price sky-high.
4. ? ? ?
5. Back to the first version.