But there is a limited amount of the crypto so they can't go unlimited borrowing all the time
This is the real point. Basically what we are saying is that Triffin's Dilemna is not a dilemna at all. Its a false dilemna.
They'll have to take out a loan in crypto and in that loan they'll have to put up collateral and pay the loan off over time.
Crypto is no good unless every aspect of it is recorded and verifiable in the blockchain. So for something like this to work (loan in crypto + collateral), you need the loan to be recorded + the collateral to be verifiable on the blockchain.
On top of that, there is an additional problem. If a country finds a huge gold mine (for example) and need to get this crypto loan against it to start funding their economy with it, there needs to be an easy way to "mine" additional required crypto, and secure it against these resources.
So what we are really talking about is a resource backed digital currency thats transparent, fully verifiable, and hopefully distributed.
So far, we dont have any crypto that actually does it, but I am sure that work is happening behind the scenes.
Crypto is no good unless every aspect of it is recorded and verifiable in the blockchain. So for something like this to work (loan in crypto + collateral), you need the loan to be recorded + the collateral to be verifiable on the blockchain
This is not a problem, this already happens.
On top of that, there is an additional problem. If a country finds a huge gold mine (for example) and need to get this crypto loan against it to start funding their economy with it, there needs to be an easy way to "mine" additional required crypto, and secure it against these resources.
I'm not sure what you mean by needing to "mine" additional required crypto. I get that the resources have to be secured against resources extracted from the country and that would come from their own resource based monetary system. Of government overprints their money supply, regular people can just exchange their sovereign currency for crypto through exchanges or P2P trading.
So what we are really talking about is a resource backed digital currency that's transparent, fully verifiable, and hopefully distributed.
Part of resource backed digital currency will be securing the supply chains of items on an immutable blockchain. Cardano and a few others like Vechain does this.
This is the real point. Basically what we are saying is that Triffin's Dilemna is not a dilemna at all. Its a false dilemna.
Crypto is no good unless every aspect of it is recorded and verifiable in the blockchain. So for something like this to work (loan in crypto + collateral), you need the loan to be recorded + the collateral to be verifiable on the blockchain.
On top of that, there is an additional problem. If a country finds a huge gold mine (for example) and need to get this crypto loan against it to start funding their economy with it, there needs to be an easy way to "mine" additional required crypto, and secure it against these resources.
So what we are really talking about is a resource backed digital currency thats transparent, fully verifiable, and hopefully distributed.
So far, we dont have any crypto that actually does it, but I am sure that work is happening behind the scenes.
This is not a problem, this already happens.
I'm not sure what you mean by needing to "mine" additional required crypto. I get that the resources have to be secured against resources extracted from the country and that would come from their own resource based monetary system. Of government overprints their money supply, regular people can just exchange their sovereign currency for crypto through exchanges or P2P trading.
Part of resource backed digital currency will be securing the supply chains of items on an immutable blockchain. Cardano and a few others like Vechain does this.