Yanis' reflections on digital currency have focussed on Bitcoin as the case study for his assessments of the potential they offer, and his appraisal of their potential has largely been negative. Yet this has not prevented him from examining how a digital currency of sorts could work for his native Greece.
Digital currency Bitcoin is the worst performing major asset class of 2014. At the start of the year one Bitcoin bought 770 US dollars, now a Bitcoin is only worth $330 USD. Even the Russian rouble has performed better: it's only declined forty-five per cent against the dollar, whereas Bitcoin has fallen by near to 60 per cent.
You wake up and decide to print out a million of pieces of paper with your face on the front. You've been very clever and made it so that these pieces of paper cannot be forged because the quality of the image is so remarkably high. You try selling these pieces of paper to other people in return for real money. Low and behold, people start to buy your paper off you and trade it amongst themselves. You are pretty pleased with yourself.