Drachma

Here’s one mystery solved.

A report from Bloomberg’s has informed me that computer systems at banks and credit-card processors would adapt quickly (days) to allow transactions in a new Greek drachma.

However the introduction of paper money would take a longer. Introducing a new currency typically takes at least six months and sometimes as long as two years.

Maybe this is the opportunity for Greece to dispense with banknotes and go all electronic.

This way they could track and tax every single official transaction.

All their social welfare would be paid electronically, in drachmas.

Once someone has wealth in the electronic system of drachmas it would be hard to get it out into the black market running in euros. There simply wouldn’t be any transfer mechanism.

If they did this there would of course be a big black market running in Euro cash. But there would be anyway, in any scenario.

And right there is a brilliant solution to their currency issue. A perfect dual currency situation.

They could of course run spot checks on Greeks for any hidden euro cash. An on the spot penalty of 40% GST should do it.