Greece is struggling to convince its creditors that the un-payable level of debt should be recognised as such to give the economy room to breathe and grow. Unfortunately the European elites know that Greece's negotiating power is constrained by the knowledge that failure to meet the demands of the Troika would ultimately force a Greek exit from the euro, which is not really considered a palatable option even by most Greeks, given this would involve a return to the Drachma, which has a history of corruption and hyper-inflation. The people of Greece have a choice between continued bowing to the European community for a generation or more, or a return to a poor and corruptible currency.
However, crypto-currency introduces a new option - a currency that is transparent and non-corruptible. If the Drachma could potentially be re-introduced in crypto-currency form, the people of Greece could have a currency they have faith in, without the risk of high inflation. And further, if it had the property that the public had ownership of the currency system through a voting system - whereby they could for example, vote on or veto any changes to the source code that underpins the currency - the people of Greece could finally have faith in true ownership of their own currency. If such a system were actually viable today, and discussed openly among Greeks, it may give them another solid option to deal with the crisis, or at a minimum, real negotiating power with its creditors should it prefer to stay on the Euro.
How could the current situation change if the crypto-currency community designed a realistic approach that could be presented to Yanis Varoufakis, the Greek financial minister, and the Greek people? How convincing might this be to the world if it were forked and set up, ready-to-use at a moment's notice, giving it real present tangibility? Could we create the crypto-Drachma today if given the go-ahead?
Personally I think it would need to meet the following criteria, though others may think of more:1) there would have to be strong confidence that the currency would not be excessively volatile
There should be no attempt by the central bank to peg the new currency, as this could be very naive and costly - it should be allowed to find its own equilibrium exchange rate against other currencies. But then volatility will be a clear concern. For a start, volatility concerns discount global cryptos like bitcoin that are subject to the whims of a global speculative marketplace. At least for now, this needs to be a currency owned by Greece. If the currency were officially accepted for all wages, goods, services, debt payments and taxes in the Greek economy, its use in all transactions, combined with a known and transparent supply, ought to provide enough stability, at least as much if not better than most fiat currency today. Regardless, initial volatility for a period may be unavoidable as the currency settles to a natural level.2) it would need to be as easy to use as Euro or any other currency today
At least in the medium term, it may be necessary to facilitate paper cash or credit transactions for most people. Perhaps this could be achieved through an independent body exchanging freely 1:1 between crypto-Drachma and cash-Drachma notes (the latter backed by the crypto-Drachma), providing 100% reserves and full public audit ability. This at least would provide options for those not comfortable with digital wallets.3) the voting system would need to be fair and incorruptible
Though PoS voting systems usually weigh votes by stake, the preference of the people may be for one citizen one vote. Decentralized voting systems would need to accommodate this and allow for proper identification processes.
These are just some seed ideas, all of which are open to debate. So is this potentially a feasible option for Greece?