Nation-State Bitcoin Strategies Envisioned Today

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Let us consider the nations of the world, their standing as monetary powers, as followers, victims, and outcasts. How will these nations use Bitcoin strategically?

There Are Four Kinds Of Countries Today

Monetary Hegemons

These are countries with massive sway over others. Other nations hold their currency as foreign reserves. They control the primary unit of account in global trade. When they print money they earn “seigniorage” profits, not just from their domestic population, but from the many foreigners holding their currency.

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There’s only one true monetary hegemony today: the United States. To some degree the eurozone, and to an even lesser degree, Japan and China, are partial monetary hegemons. Their currencies are held as foreign reserves in smaller amounts. But primarily the U.S. is the overwhelmingly dominant power; it has the world reserve currency and the deepest and safest markets. It controls the numeraire for world savings and trade. It controls the financial infrastructure used in international payments: the Society for Worldwide Interbank Financial Telecommunication (aka SWIFT).

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