Frank Martin • almost 12 years ago
Applicability to Iceland
This initiative seems timely in view of the situation with Iceland. If they elect to adopt the Canadian dollar as their currency presumably they will want to adopt it in electronic form as securing and handling Canadian banknotes is probably not worth the effort.
Right now Iceland has a population of 313,000 and has notes and coins equivalent to $1000 per capita in circulation. For nearly 20 years they had currency equal to about 1% of GDP, but since the Icelandic banks began crashing, the amount jumped to 2% GDP
As Iceland has 280 larger coins, and 316 pennies per capita in circulation ($92 per capita), presumably they will take a write off of about 25%, and accept the existing Danish coins as 1 kroner = 1 cent Canadian. But rather than replace the banknotes, it would make much more sense to go all electronic.
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