Fact or Speculation? Greece crypto-currency to be introduced

Greece,Grexit,Eurogroup meeting

AtoZForex.com Lagos — Some experts have proposed a rather contrarian solution to Greece’s debt worries. The introduction of “drachmae”, a bitcoin inspired crypto-currency which involves the application of bitcoin's underlying blockchain technology, backed by Greece’s assets. This could help solve the country’s debt issues by creating sufficient cash to meet its obligations while still keeping it within the Eurozone. So says some experts.

The country is deeply entrenched in debt as it faces a staggering commitment to the IMF, ECB and EU as well as local obligations to pay government employees and pensioners.

Lee Gibson Grant, founder of Coinstructors and one of drachmae's lead advocates, told IBTimes UK that: “If Greece has this many assets, why not back a new digital currency with them rather than undertake a massive fire sale that won't even cover the costs of the debts. Not only this but nature of the blockchain would give drachmae much-needed transparency. Such a system would be radical, but would tackle Greece's problems regarding a feared run on its banks, inflation of its currency should it revert to the drachma, and eliminate corruption as all transactions and payments can be traced. Given the current situation in Greece, the macro-economic implications of this debate are considerable."

Besides the challenge of regulatory frame work and bureaucratic frustration that will be required to pass such a system, Mr Grant sees resistance from Government officials as the next biggest challenge to the creation of drachmae as is will fully expose the extent of the loop holes in the financial system and the level of mismanagement. Commenting on another group’s ideology that bitcoin in itself could serve as a solution to Greece’s troubles, Mr Grant believes that will not work. He said: "People in Greece don't have bitcoins and if the government is bankrupt how is it going to buy the bitcoins? Just accepting it as a form of currency won't help Greece."

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Brian Kelly, a leading investor agrees with Mr Grant. He described the drachmae solution as a "simple and elegant" solution, as it allows the indebted nation to monetise its assets and meet its debt obligations. dollar, Draghi, ECB, EUR/USD, EUR/USD Forecast, EURO, European Central Bank, EURUSD analysis, EURUSD outlook, EURUSD technical analysis, Mario Draghi, ABS, TLTROs, Targeted LTRO, asset backed securities, broad based asset purchases, U.S Dollar, USD, EUR/USD outlook, EURUSD forecast, EUR/USD technical analysis, EUR/USD analysis, EUR/USD projections, EURUSD projections, EURO, minimum bid rateProponents of the drachmae idea have organised a online discussion forum, set to take place on 20 May, for the discussion of the pros and cons of the bitcoin inspired drachmae.

Greece crypto-currency is just one of many potential solutions to the country's problems. Recently, Greece was reported to have been invited to join Russia and its allies as a sixth member of the New Development Bank.

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