If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
I think a country would be able to survive just using crypto, but there are some things to consider:
1. The country would have to be technologically advanced and able to support the blockchain and Bitcoin. It would also have to be very supporting of Bitcoin and support for bitcoin would have to be over 80 percent of the population.
2. The cryptocurrency would have to be trustworthy and would have to be able to support heaps of transactions a minute and still be running super well. A congested blockchain would not be good for business.
This would be interesting to watch for sure, and might actually happen sometime in the future.