I have long felt that adoption as native currency is the long-term way forward for Crypto. Once upon a time Bitcoin was the prefered coin, but these days it has to be Bitcoin Cash. A more mature approach, acknowleging problems brings us closer to this important milestone, I hope.
Executive Summary
A small state with chronic inflation, a weak balance of payments and entrenched corruption can replace its currency with Bitcoin Cash (BCH), fund the switch largely through state mining, and collect almost all of its revenue through a single, low-rate transaction tax that is computed from the public blockchain.
The design rests on one idea: at every point, registering is cheaper than hiding. Declared wallets pay no tax on transfers between themselves. Registered traders pay a lower rate. Registered residents receive a tax-free allowance, fee rebates and consumer protection. Declaring wallets is voluntary, but a declared wallet simply pays, like a known customer’s cheque, while an undeclared one must show identity for large purchases. Staying invisible always costs more.
The headline rules:
- Money. BCH becomes sole legal tender. Existing notes stay legal indefinitely at a slowly decaying rate against BCH. New small notes are likely, so people always have cash in their pockets.
- Reserves. The state accumulates BCH quietly, mainly by mining, before it announces anything. It switches the currency only after the price has settled.
- Tax. Every other tax is replaced by one transaction tax: a small floor rate on every transfer plus a full rate on sales to the public. Liability is calculated from the chain, so returns are near-automatic.
- Enforcement. Certified payment terminals, tax collected by registered businesses, a voluntary declaration of wallets that frees the holder from checks at the till, and a registry that links declared wallets to people, with strict, logged access.
- Banking. Payments settle on-chain and are fully backed. Savings can be lent out, with every bank’s reserves and liabilities provable in public.
- Protection. Home, car and other long-term finance is tied to the value of what is bought, not to BCH, so it stays fair to both sides whichever way BCH moves. Payments are capped for a limited period when a household’s income falls. An optional Safe Wallet standard protects against scams and duress.
- Integrity. Treasury keys are split between five offices of government. Reserves sit in time-locked vaults. Core rules need a two-thirds majority to change. The state never borrows in BCH: it saves in good years and draws on its fund in bad ones.
Moving early adds a further prize. Early adopters buy before the price reflects national adoption, secure mining power cheaply and become hubs of the BCH economy. Later adopters gain less financially but take on a proven model at lower risk. The full paper sets out why, and how. The plan is built to work without any windfall; a windfall is an upside, not the foundation.
The Problem
The state this proposal addresses is small, open and trapped: its money loses value, its borrowing is in dollars, and its tax base leaks through cash and corruption. No real country is named; the pattern is common.
- Inflation. The local currency loses value year after year. Citizens convert their wages into dollars or goods as soon as they are paid. Savings in local money are a losing bet, so few people save in it.
- Balance of payments. Imports, especially fuel and food, exceed exports. Foreign-currency reserves are thin. Each devaluation makes imports dearer and feeds the next round of inflation.
- Foreign debt. Much of the state’s debt is owed in dollars to foreign creditors and multilateral lenders. Servicing it crowds out public spending and ties policy to the lenders’ conditions.
- A cash economy that escapes tax. Large transactions happen in cash, off the books. Tax falls heavily on the few who cannot avoid it, such as salaried employees and importers at the border.
- Corruption in collection. Money leaks between the taxpayer and the treasury. Officials pocket cash payments, sell favourable assessments and trade on inside knowledge.
- Banking that fails its customers. Credit is scarce or captured by insiders. Dishonest lenders and loan sharks fill the gap. Correspondent banks abroad are cutting ties with small, risky jurisdictions.
Conventional fixes have been tried: IMF programmes, currency boards tied to the dollar, tax reform drives. Each depends on institutions that the corruption itself has weakened. This proposal changes the infrastructure instead, so that honest behaviour is the cheapest option and dishonest behaviour leaves a permanent, public trail.
No country is free of corruption; it is a matter of degree. On Transparency International’s Corruption Perceptions Index, more than two-thirds of the 182 countries scored fall below 50 out of 100, and the global average is 42 (Transparency International, 2026). The aim is not perfection but direction: to move the worst-governed countries onto a path where corruption becomes visible, costly and steadily rarer. Progress can be judged by a country’s movement up the index over time.
Contents of the full paper
- Executive Summary
- The Problem
- Why Moving Early Matters
- Who Should Go First
- Why Bitcoin Cash
- Guiding Principles
- Part 1 — Currency and Transition
- Part 2 — Building the Reserves
- Part 3 — Taxation
- Part 4 — Enforcement and the Address Registry
- Part 5 — Banking and Credit
- Part 6 — Payments and Consumer Protection
- Part 7 — Chain Governance
- Part 8 — Capture-Proofing
- Part 9 — Resilience
- Part 10 — Managing the Economy Without a Printing Press
- Implementation Timeline
- Risks and Open Questions
- References
The full paper is a 36-page PDF. I’m not sure whether Dropbox links are allowed here, but I’m happy to send a Dropbox link by private message, or post it here, if anyone is interested.
I’d welcome criticism of any part of it, especially from anyone with experience in tax, central banking or BCH protocol work.