Will Greece Adopt Bitcoin as the Default Currency?

Golden Bitcoins

Golden Bitcoins

With continued pressure from the European Union to agree to a deal, Greece finds itself in an increasingly challenging situation. Fearing a run on the banks Greek Banks will remain closed throughout this rest of this week. ATM transactions for Greek citizens are limited to 60 Euros per day. Such restrictions on a country and its financial system are unprecedented. It appears that if you are Greek that you have been flagged and tagged by major online retailers as well. Amazon and Apple have placed restrictions on their Greek customers.

Without many options, at the moment and with the considerable uncertainty of Greeceā€™s futures in the European Union some Greeks are turning to alternatives like bitcoin. Even though there are obvious limitations with bitcoin like buying groceries. Bitcoin would not be subject to all the restrictions Greeks are experiencing today. It appears that some Greeks have already created a form of exchange where bitcoins can be exchanged for cash since banks are closed and sending bank wires are currently not an option. If bitcoins prove to be a viable option for many Greeks its popularity could grow quickly. Making successful transactions using bitcoins will instill confidence in the digital currency which may result in increased availability among merchants.

The outcome of the current Greek crisis will have a significant impact on the direction and the level of popularity of bitcoins for Greeks. If there is a Grexit at some point, the Greek Drachma would be the legacy currency and not a very attractive option for the Greek people. The currency would be dramatically undervalued, and Greece would find itself isolated with its problems with the IMF and Eurogroup. It is not too much of a stretch to imagine Greeks adopting bitcoins quickly and even without the need for Government action having it become the default currency.