Hey, Mongolia, You Could Be the First to Adopt Bitcoin as Currency

Julian Dierkes speculates about the possible way ahead for Mongolia and asks for ideas. He also kindly links to my posts (the “Mongolia” category of this blog).

Okay, here are some ideas not mentioned in his post.

For one, as I said before, they should open a Casino in Zamyn-Uud. That is even closer to Beijing than Macao, where the Chinese gamblers now get rid of their money.

But Mongolia could also be the first country in the World to officially adopt Bitcoin as a currency (of course while leaving the tugrik in place for the time being). Sort of like being the first country to have a website for their government way back in the 90s.

Do that. Give some banks official licenses to operate regulated Bitcoin exchanges. Any country that gets ahead in the race to regulated, safe Bitcoin exchanges can hope to get a large slice of this new financial market.

While I don’t know if this is really a good idea, I do know that no country has ever tried it. With Mongolians knowing a thing or two about the Internet, it might be an interesting experiment to just do it and see what happens.

On the other hand, there may be a problem with such a plan. Of course, bribing politicians is much easier with the relative anonymity Bitcoin provides for. Mongolian politicians may be very reluctant to accept this kind of idea because they fear that it might make corruption worse. But bribery by Bitcoin can be done right now, even without any official support by the Mongolian government. So it’s not really a problem after all.

Actually, if there really is a lot of corruption right now, this particular point might even help getting this kind of plan adopted.

Published by kflenz

Professor at Aoyama Gakuin University, Tokyo. Author of Lenz Blog (since 2003, lenzblog.com).

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