I ran across this article http://www.investopedia.com/articles/04/082504.asp about the idea that a country abandon the local currency in favor of the exclusive use of the U.S. dollar (or another major international currency, such as the euro). They call it "dollarization" so why don't we add "bitcoinization" to the discussion?

It also talks about the idea of "pegging" their local currency to a major international currency (this differs from dollarization as it is non-exclusive use).

So, what if countries start using Bitcoin in either of these ways? There are many (hundreds) of countries, some too small to really develop "counterfeit" proof fiat paper currencies. And with the proliferation of cell phones, digital money is just more efficient so they would be able to leap frog over the whole fiat fiasco by going right to digital.

So what might countries experience if they did allow Bitcoin an equal playing field to compete with other currencies that their populations are already using? Especially the type/size country the article is talking about (smaller ones).


Read more: Dollarization Explained | Investopedia http://www.investopedia.com/articles/04/082504.asp#ixzz4YzsnBALH
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