Drachmae: A Bitcoin-Like Solution For Greece’S Troubled Economy

CNBC contributor Brian Kelly, the writer of “The Bitcoin Big Bang: How Alternative Currencies Are About to Change the World,” proposes a quick as well as elementary bitcoin-like solution for Greece’s troubled economy.

Since the Jan elections that brought the “anti-establishment” Syriza political party to power, Prime Minister Alexis Tsipras has been trying to renegotiate the Greek debt amongst the European Union (EU), simply the solid set down remains strangled past times unusual debt. Rumors of a possible “Grexit,” the leave of absence of Hellenic Republic from the EU, maintain surfacing.

Writing on CNBC, Kelly notes that Hellenic Republic could remain inwards the Eurozone as well as start out repaying its debt, simply it needs a method to monetize state-owned assets spell withal maintaining ownership. Kelly is persuaded that a digital currency based on blockchain technology scientific discipline could render the solution.

While Hellenic Republic may non produce got the liquidity to satisfy its electrical current obligations it does produce got plenty illiquid assets to solve much of its financial problems. The Greek regime could purpose blockchain technology scientific discipline to produce a digital currency backed past times Greece’s 86 billion euros inwards illiquid assets.

The regime of Hellenic Republic would house a part of its assets into a trust, as well as produce a digital currency backed past times this handbasket of assets. The digital currency could as well as therefore endure used to repay creditors as well as pay regime employees. Initial proceeds from the sale of the currency could endure used to run across obligations to the European Union, spell regime employees could endure paid inwards this parallel currency.

According to a Reuters report, the European Central Bank is working on an IOU-based secondary currency similar to the IOU’s used past times California inwards 2009. Kelly notes that Greece’s Finance Minister Yanis Varoufakis wrote a weblog shipping service inwards Feb proposing a similar IOU-based currency, which he dubbed Future Tax Coin (FT-Coin). Varoufakis is non impressed past times bitcoin equally a currency, simply he is persuaded that its underlying technology scientific discipline could endure set to effective purpose inwards troubled economies.

“[T]he technology scientific discipline of Bitcoin, if suitably adapted, tin endure employed profitably inwards the Eurozone equally a weapon against deflation as well as a agency of providing much needed leeway to fiscally stressed Eurozone member-states,” said Varoufakis. His shipping service explained inwards exceptional how Hellenic Republic could produce an FT-Coin payment organization amongst a Bitcoin-like algorithm to become far transparent, efficient as well as transactions-cost-free.

According to Kelly, an IOU currency issued past times a regime nether financial stress is non a workable solution. Its credence would depend on the populace confidence inwards the Greek regime as well as its mightiness to collect hereafter taxes, which can’t endure taken for granted, as well as on the availability of slow ways for consumers to pass the novel currency.

Kelly is persuaded that his choice proposal – an chance for real-world implementation of block-chain technology scientific discipline – would work, as well as invites everyone to endure a business office of the solution past times submitting proposals as well as commenting at drachmae.org. Influenza A virus subtype H5N1 wiki has been created where block-chain technology scientific discipline firms tin submit as well as speak over all the technology scientific discipline that volition endure needed.

“The aim of this WIKI is to back upwardly a white newspaper as well as projection retrieve tank looking to see if a feasible working real-life solution tin endure delivered to aid Hellenic Republic amongst their real-world problems,” says the drachmae wiki. “An opened upwardly invite has been break to the Crypto as well as wider technical community to empathize how blockchain technology scientific discipline tin endure used to render a working solution.”

On May 20, Kelly volition host an online symposium where companies volition produce got the chance to introduce their slice of the workable solution.