Topic: National Crypto Currency: How SHOULD it be done VS how WOULD it be done (Read 380 times)

I'm surprised this thread of mine got so few replies, I thought it would have been an interesting topic to talk about, everyone too busy getting over hyped about the Dash price skyrocketing I think...

Anyway, apparently Senegal (a small country in Africa) is issuing a crypto currency, and, as I suspected a country implementing a crypto would, they have stuffed it up by having it centralized.

https://cointelegraph.com/news/senegal-introduces-cryptocurrency-based-on-its-national-currency


And Tunisia has also done the exact same thing

http://www.econotimes.com/Tunisia-To-Replace-eDinar-With-Blockchain-Based-Currency-140836



Such a shame they just don't seem to be able to let go of control.

Well its is mostly just me speculating.

I think it could work if they did it right, but i'm 99% sure they will do it wrong.

These are the 2 news articles I read before creating the thread:

China National Crypto:
https://nakedsecurity.sophos.com/2017/03/09/china-mulls-national-cryptocurrency-in-race-to-digital-money/

Russia National Crypto:
http://rbth.com/business/2016/05/27/national-cryptocurrency-may-be-introduced-in-russia_597941

Important quote from the russian article:

That pretty much proves they will screw it up right there.

Since creating topic I have also found this article on Sweden:
http://www.financemagnates.com/cryptocurrency/news/sweden-may-issue-a-national-cryptocurrency-e-krona-within-two-years/

How serious any of these 3 nations are about issuing a crypto is yet to be seen, but I imagine its very low on the to do list, I dont think we will see it any time soon. In fact I dont think the first country will be a country that hasn't already had their currency fail through hyper-inflation or other means (ie, Venezuela, Zimbabwe)

but I think is very difficult, if the government formally participate in cryptocurrency. mining and settings will be more complicated, because the demand of transparency of ownership, the use of which is based on the laws of each country, it is very complicated and lengthy. and copyright ownership cryptoccurency also are questionable and can not be justified.

if more money from fiat bank come here, i'm sure the government will begin to look at thisplace, for revenue, they can charge some fee and do a cloud mining maybe? maybe we have finally a good legit service about cloudmining directly done by the banks, it could be fabulous

Will this work? , How is this all going to be successful? I'm still confused if the government will begin to look and use cryptoccurency. how the viewpoint of the world bank and the IMF? , Or just  you speculation? ,

For ease I am going to use USA as the example, IMHO:

Should:
-Create a crypto and pre-mine the equivalent number of tokens to US dollars in existence
-Announce a date at least a couple of years into the future when the US dollars will no longer have value. Can be traded 1 for 1 with new crypto at any bank.
-Most transaction fees, along with a coin inflation rate of approx 2% per year, given to miners.
-Reasonable attempts to make coin private
-I think it would be acceptable to have a small amount of transaction fee go to the government wallet to mitigate against increased tax evasion resulting from the coin, or, it could be a larger transaction fee, but the government would reduce or abolish other taxes. Because i'm pretty confident any national crypto would also be used by citizens of other countries this could easily produce a larger than expected benefit.
- All shops operating in country legally required to accept national crypto as payment.
- Fully de-centralized. Once released any updates in the hands of the miners and stake holders. In the event of a hard fork congress decides which fork is the "true" fork.

Would
-Fees too high and would go to a "national wallet" that is held by the government
-Centralized aspects, including the ability to confiscate wallets, because.. terrorism
-Wallet tax of a certain percent to go to "national wallet" automatically every month or quarter or something.
-No privacy
-A "central authority" would be able to control the coin emission rate, to "help manage the economy and reduce recessions". This single point would destroy the primary advantage for a country to swap from fiat to crypto currency (public faith in money supply)
- All shops operating in country can only accept national crypto as payment, all other methods outlawed.

There are talks of both Russia and China adopting a National Crypto at the moment. I think there will be more aspects of the "would" section than the "should" section in either of their currencies.

Time will tell.