What is the best currency to take to Kenya?

What would it take for a country to create a P2P digital version of its own national currency? Would this be a good idea?

• This is not about converting to an existing digital currency, but about creating a new one which was convertible to the national currency. There are several separate issues here: How could a country reserve the right to control the digital money supply without creating some cryptographic single-point-of-failure? What kind of guarantees would be needed of convertibility? What kind of anonymity guarantees would be appropriate? How much seigniorage advantage would a country like the US, UK, or Japan get from doing this? That is, how much would such a digital currency catch on in areas outside the country's borders? How would the block chain be maintained? (Proof-of-stake, proof-of-work, or other) What would be the effect on existing digital currencies? The new currency would share some advantages (P2P transactions) but not others (fixed supply as a guarantee against inflationary spirals). Would there be room for both or would one dominate?

• Answer:

  A country could do this easily.  Let's imagine that they had a version of the bitcoin protocol that was open ended.  Except that only the government has the information needed to mine new bitcoins.  They control production and distribution.  I can't imagine any large country doing this.  Simply because it makes it so much more difficult to follow money trails and audit income.  it's not in their interest to provide privacy.