Yanis is quite right to emphasize the difference between ending a currency as for example Argentina did against the Dollar, and creating a new currency from . However he seems to think that no transfers can take place until the physical currency is in circulation, as if the currency itself which is what what has value. However cash is simply a contractual IOU, a note of assets and liabilities, a note of a debt.…
Providing the public can pay its taxes don’t need physical currency. For those that cant or wont use electronic payments – like some pensioners and those without bank accounts – the market has found a solution. You can buyt in almost any country the world electronic payment cards preloaded with electronic currency. We know that Visa has already set up its systems to allow for a new Greek only Euro. This would be bound to trade at discount becoming a new Dracma for reasons I have explained. Therefore as soon as any Greek Government is fored to create electronic currency to jointly provide liquidity to its banks and pay wages the market within days would be issuing such cards.Decisions, Decisions, Decisions
Varoufakis is Wrong – Once an Electronic Drachma is Created The Market Will Quickly Supply the Currency
Andrew Lainton
