This page either does not exist or is currently unavailable.You can also search for something on our site below.Could Greece take bitcoin as its official currency?(Picture: Reuters) With time now rapidly running out, Athens and its lenders – other eurozone countries and the International Monetary Fund – appear to be deadlocked over how much more Greece must tighten its belt in exchange for needed funding.The eurozone portion of Greece’s €245 billion bailout expires on June 30, the same day Greece faces a €1.5 billion payment to the IMF.This amount of debt and interest is totally unsustainable for Greece to maintain and the country has no more to give.It would not be a good idea for Greece to renounce the euro and adopt bitcoin which would mean giving up their sovereign monetary policy.Monetary policy, used responsibly, is useful to manage public finances, provided it is not abused to issue too much currency.Greece cannot itself use monetary policy whilst it is part of the eurozone and adopting bitcoin would put Greece in exactly the same position.

In fact, the finance minister of Greece, Yanis Varoufakis, agrees that because it is deflationary, bitcoin would be bad for Greece.local bitcoin bangkokHe then goes on to say that bitcoin is a flawed currency because it is deflationary.bitcoin wallet apple appThis misses the point.bitcoin to eth exchangeBitcoin is a global currency (or more correctly a ‘value-transfer’ system) for anyone and everyone and not a currency designed for use by a government.bitcoin etf nyseBitcoin is a software-based online peer-to-peer payment system described by its inventor Satoshi Nakamoto (assumed to be an alias) in 2008 and introduced as open source software in January 2009.bitcoin share price bloomberg

Transactions – payments and receipts – are all recorded in a public ledger (called the blockchain) using its own digital unit of account, which is also called bitcoin.bitcoin bumpIn addition, bitcoin is deflationary with a fixed amount of regular issuance controlled by the bitcoin software algorithm.ban tien bitcoinThe amount in issue today is around 14m and the total amount that can ever be issued is capped at 21m – forever.1 coin bitcointalkIt would be far better for Greece to consider adopting the bitcoin open source protocol to create its own government-backed bit-drachma with the Greek central bank and its national banks acting as ‘validators’ with a pre-mined (ie.ethereum os linuxelectronically printed) amount of bit-drachma equivalent to the amount of euros held in Greek banks.

In addition, an additional amount, say up to 10%, should be pre-mined and distributed equally to each individual Greek taxpayer with a valid social security number.This would please everyone.It would be like QE (quantitative easing) for the benefit of the people of Greece and appeal to the philosophy of the left-wing party Syriza.The bit-drachma would be issued as a parallel digital currency alongside the euro and help Greece to achieve a more controlled and manageable ‘Grexit’ from the euro.So, if the Greek government issued a parallel digital currency, decreed it as legal tender and banks and businesses made to use it, this would also boost the Greek money supply in defiance of the policy of the European Central Bank and return monetary policy to Greece.Bills and pensions could then be paid.Normality would start to return.Greek citizens would be happy and admire their government.This could all reasonably be done by the end of June and new paper money (cash) could follow soon afterwards.

MORE: 6 things you’ve always wanted to ask about Bitcoin YOU ARE HERE:And bitcoin, the so-called 'crypto-currency' could be the solution.According to Coin Telegraph, BTCGreece, the first bitcoin exchange in Greece, plans to install 1,000 bitcoin machines in partnership with bitcoin platform, Cubits.1,000 Bitcoin ATMs Are Coming To Greece: http://t.co/VXeFnWmrYR — AnonymousArmy (@AnonymousNewsHQ) September 7, 2015 Strict capital controls have been in place in Greece since June, leaving people and businesses unable to withdraw more than $66 (60 euros) a day and banned from transferring money to foreign bank accounts.This has led to more people viewing Bitcoin as a viable alternative."We are creating the ecosystem of bitcoin and blockchain solutions in the Greek market," BTCGreece founder Thanos Marinos told CoinTelegraph."That will include the roll out of 1,000 ATMs and solutions for the e-commerce and tourism industry."Greece Facing More Scrutiny as Euro Parliament Wades In on CrisisAs part of the bailout package, Greece agreed to increase Value Added Tax (VAT) from 13 to 23 percent, leaving retailers no choice but to pass on the increase to the customer — and the customer forced to pay more for goods.

But when it comes to bitcoin, the European Court of Justice recently ruled that the digital currency was not a 'taxable event' in the eyes of VAT.This could be why the installation of 1,000 ATMs in Greece is seen as a popular move, while the traditional banking system relies on its bailout from Brussels.Related:'Red Rag' to Europe: Varoufakis Greek Finance Minister No MoreGreek Refrendum Triggers Surge in Bitcoin PriceBitcoin or Bust!Economic Worry Could Lead to Greek Crypto-CurrencyBitcoin might be a plaything to many – a fun way to experiment with digital cash, or perhaps to buy things online that you’d rather people didn’t know about.But others are seeing it as a serious haven in a financial storm.Countries that are in the midst of a financial crisis often tighten the financial thumbscrews, imposing capital controls on their populations that stop them doing even basic things like taking cash out of the bank.Could bitcoin be an alternative for people in those economies?At the time of writing, the latest country facing a financial meltdown is Greece.

The country joined the European Union in 2001, and has been one of the poorest regions in Europe since.In 2008, when the global financial crisis plunged countries into recession, Greece suffered heavily.It has racked up huge debts, and has spent the last few years being bailed out by the European Central Bank, among others.Greece’s government has become increasingly irritable about the austere conditions imposed on it by its creditors, and in June 2015 (the time of writing), negotiations on the latest round of bailouts finally collapsed.The company entered a referendum to see if it would stay in the euro or simply exit altogether.In the meantime, the government tried to avoid a run on the banks – in which panicky consumers take out all of their money – by simply closing them for a week.If people lose faith in a currency, the typical reaction is to start using another one.Traditionally, money has simply flung to the most stable currency, which has typically been the dollar.But bitcoin has a couple of advantages over old-fashioned cash.The first advantage is that it is not controlled by any central authority.

In countries where people are increasingly distrustful of how central banks and governments manage the economy, bitcoin may seem like a more sensible alternative.The second is that bitcoin may be easier to obtain than other fiat currencies..Evidence suggests that during times of crisis, people are increasingly looking to bitcoin as a viable alternative to their own beleaguered currencies.As the Greek crisis unfolded, bitcoin exchanges reported a healthy bump in volume as people traded the cryptocurrency around the world.The lion's share of the increase came from customers in Greece.The price of bitcoin also rose significantly as the Greece crisis deepened, lending further credence to the idea of bitcoin as a ‘panic’ currency.Price spikes in bitcoin have correlated with financial crises before.In April 2013, when Cyprus was in the thick of its banking crisis, prices of the cryptocurrency reached record highs.Other places imposing capital controls have also seen populations flee to bitcoin.

Argentina is a case in point.The country’s government stopped its population buying US dollars after suffering its own financial crisis.Reports suggest that Argentina has become a hotspot for bitcoin activity, as banks stagnate.Prices there were higher than in other countries.Argentina has even become a leader in the Bitcoin Market Potential Index (BMPI), a report produced by experts at the London School of Economics, which shows economies in which bitcoin could gain the most traction.People might like the idea of fleeing a sinking currency in favour of a digital one with no central control, but there are potential drawbacks.For one thing, the price of bitcoin is extremely volatile, and people sinking large amounts of money into it could find their net worth rising and falling like a ship on an ocean squall.If people in troubled economies begin using bitcoin as some kind of safe haven, they could find themselves in even more trouble than they were originally.As with any form of highly speculative financial instrument, people shouldn’t invest more in bitcoin than they can afford to lose.