Bitcoin, Crypto currency, Blockchain

A small country wants to cover the country’s currency with Bitcoin and not with Gold

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A small country wants to cover the country’s currency with Bitcoin and not with Gold

Home News a Small country, wants the national currency with Bitcoin to cover, and not with Gold

Of
Marcel Knobloch –
05.07.2019

Bitcoin is the largest crypto-currency and is regarded in many circles now as a respected store of Value. In addition to many critics, however, there are also prominent voices, who see in Bitcoin the “money of the future”. Now it became known that a small country wants to cover their own Fiat currency through Bitcoin.

The Host of CNBCs Crypto Trader Show made yesterday a stir worldwide when he announced publicly that information is available, describe that a small country wants to cover its currency with Bitcoin. According to the Ran nines he has signed a confidentiality agreement and cannot reveal which country it is that currently BTC is investigated, and a possible cover for the own Fiat currency is considering.

He himself considers that this proposal for a long-term development, shows the direction in which crypto-currencies and especially Bitcoin will develop. Overall, he is surprised and thinks that other countries can follow.

Today’s Fiat currency system is no longer as it used to backed by Gold but solely by the trust in the respective currency. That is why the Inflation has made the world strong, but there is no corresponding need to be more present, which covers the Euro or the US Dollar. The small country is currently considering whether to take the place of the gold Bitcoin as a value can serve. In this case the strong volatility of Bitcoin in the room, however, so this idea needs to be explored in detail.

According to the latest Reports, the Cuban government is currently considering whether a crypto-currency could alleviate the economic problems of the country. President Miguel Diaz-Canel, Cuban government officials announced a series of new economic measures to help the country get rid of crisis from the current economy. The exploration of the application potential of digital currencies is a measure. Economy Minister Alejandro Gil Fernandez stated to Reuters the following (loosely translated):

We investigate the potential use of crypto-currency… in our national and international trade transactions, and work together with scientists in mind.

In the difficult Cuban economy, which is dampened by the tightening of the U.S. sanctions, the decline in aid from Venezuela and the reduction in exports, to check officials, all kinds of options for the basic supply. Cuba is not the only country that a state-based crypto-currency examined, in order to circumvent sanctions in different countries. The Venezuelan President, Nicolás Maduro, launched the Petro in February 2018 as its official digital Alternative to the Bolivar. The Petro is to be covered by the Oil reserves of the country, however, this was never investigated by an official body or by an official Audit and confirmed. Venezuela is considered to be one of the countries with the largest natural Oil reserves in the world.

Turkey, Iran, or Switzerland – a lot of countries are thinking about the introduction of a digital currency, since it both for the States and for the citizens of the country, a whole series of advantages arise. However, the market and the actual Vision of decentralisation still in its infancy.

Featured Image: Wit Olszweski | Shutterstock

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