ELECTRONIC currency could hold the answer to Greece’s financial woes and future of the EU, an expert has suggested.
An alternative paperless currency running parallel to the euro could provide a viable, cheap fix to Greece’s debt stalemate.
Shoreham-based Lee Gibson Grant, a founder of cryptocurrency consultancy Coinstructors, has written a white paper on the ‘E-Drachmae’.
The idea is a hybrid of a parallel digital currency and an asset-backed security and would allow Greece to retain ownership of its assets.
The currency could be used to pay government salaries and workers could spend the currency at local businesses.
It would create an investable asset that would be a proxy for a recovery of the Greek economy.
Greece is under pressure from the European Commission over its massive debts and is at risk of defaulting.
Mr Gibson Grant said: “Although widely viewed as one of the poorer members of the EU, Greece per capita is ranked seventh in terms of infrastructure wealth, while Germany ranks 17th.
“Instead of selling its airports, transport systems and strategically placed islands to service its debts, the Greek government could monetise its infrastructure assets and create a new digital currency (drachmae) that would have a stable value.
“Drachmae could then be used to pay government workers and pensioners through the digital ledger Blockchain.”
He added: “Greece currently faces some very stark decisions regarding its economic future. Years of profligacy and corruption have created an unsustainable position that cannot be allowed to continue.
“Greece could put to use its considerable heritage and place itself at the forefront of the cryptocurrency revolution.
“To convert the people of a country to the benefits of digital money will take a considerable leap of faith. However the economic suffering inflicted on Greece has created a desperate situation with insurmountable economic burdens.”
According to Eurostat, Greece has 86 billion euros of financial assets on its balance sheet. As a percentage of GDP, this makes Greece the seventh wealthiest nation in the EU.