Former IMF official Dr. Warren Coats offers a new article on the prospects for Bitcoin to function as a currency. He also describes what he believes would an "'ideal monetary regime" in the article. Below is an excerpt from that part of the article.
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"The ideal monetary regime is to fix the value of currency to something (such as gold, or a basket of currency as in the case of the IMF’s SDRs, or a small basket of widely traded commodities) and then allow the public to adjust the supply to match its changing demand for that fixed value. Such a system follows currency board rules. The central bank passively supplies or redeems its currency in response to the public’s demand at the fixed price. Such a system has been adopted by several countries as is described in detail in my book on the creation of the Central Bank of Bosnia and Herzegovina. [“One Currency for Bosnia-Creating the Central Bank of Bosnia and Herzegovina”]"
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