11 Jul 2015

N-Euros or Bitcoins?

In response to the crisis in Greece, I have made a number of suggestions for ways to break the stranglehold.  In particular, a few weeks ago I suggested that the Greek government could introduce a government-backed "Bitcoin" pegged to the Euro. It turns out that the ex-Greek Finance Minister Yanis Varoufakis talked about the possibility of using a Bitcoin-like system in the Eurozone in February 2014 on his blog in a piece called "BITCOIN : a flawed currency blueprint with a potentially useful application for the Eurozone" as well as an earlier piece called "Bitcoin and the dangerous fantasy of "apolitical" money".

But, in the last few days, I have have been pushing an alternative idea - namely, I've been arguing that Governments should introduce a parallel debt-free Euro that I have called the "N-Euro" - see my post "Greece : Bring in the N-Euro now!" And as of yesterday, there is now a Cyclos 4 based alternative that actually exists  at www.n-euro.org. I'm just waiting for the first official partner to contact me, and we can start the ball rolling!

Please note, that these proposals are not linked to N-Euro - the Estonian Rock Band who were active from 1999 till 2008 (!!). My apologies for any confusion. And my apologies to any fans who try clicking on the links on the bands wikipedia page - they will get a shock. (I guess that the band neglected to keep the www.n-euro.com domain name active).

Before going any further, I just wanted to explain my change of heart. Why not use a Bitcoin style Crytocurrency? After all, they do provide a real alternative to the conventional Banking system which relies of the use of monetary tokens created for profit by commercial banks.

The problem with Crytocurrencies like Bitcoin is that, even if they are backed by a government (such as the Greek Government), ownership can be transferred to literally anyone with no controls. Thus, if the Greek Government were to create 1 billion Bitcoin equivalents, that were given a value of exactly €1 because they were accepted for paying Greek taxes, there would be nothing to stop some unfriendly players in the financial markets buying up the vast majority of the stock (by proposing to buy them for €1.10, for example), and thus render the system unworkable. Yes, the Greeks who sold their Greek government bitcoins for €1.10 would have got some "real" euros in return. But, as we have seen, having "real" euros on your bank account doesn't actually help when the International Banking Mafia have the power to Blackmail your government by forcing Banks to close and refusing to allow people to draw out their Euros in cash.

Would the Banking system try to disrupt an official Greek government Bitcoin system? You bet they would.

So, one of the really great features of having a Government backed N-Euro system, such as the one I have just set up using Cyclos, is that the Government gets to control exactly who is allowed to use the currency. Essentially, if you don't have an official account on the system, you don't get to play. And if anyone is caught out trying to manipulate the system by buying up the N-Euros on individual citizen's accounts by offering them €1.10 (which they certainly could), all they would get is a bigger number in their N-Euro account. But, as everyone knows, all money in bank acounts is just numbers - a series of 0s and 1s on some hard disk somewhere. And the Government would be perfectly entitled to say, sorry, we have just decided to remove all the N-Euros from your account. It's our banking system, and we set the rules. (Boy, would that be fun!).

So, that's why I'm now 100% convinced that this is the way to go. As soon as any authority with the power to raise taxes, anywhere in the Eurozone, decides to try out the N-Euro system, then the revolution will be underway. Within months, the scam that is at the heart of the entire financial system, namely the right of Commercial Banks to create our money out of thin air  as interest bearing debt will be in broad daylight.  And Europe's taxpayers, who have been paying trillions of Euros to rent our currency from the International Bankers will be able to say, quite rightly, we want our €6.7 trillion back

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