Earlier this week, Greece became the first developed nation ever to default on the International Monetary Fund (IMF). Negotiations with the European Union (EU) and the IMF are stalling, and Greek voters on Sunday rejected new bailout terms.
On Monday, Greece closed its banks and imposed capital controls to prevent financial chaos after the breakdown of bailout talks. Banks and ATMs are still working on a very limited basis, which makes things difficult for families and pensioners. For businesses and entrepreneurs who depend on cross-border sales and imported goods or services, the situation couldn’t be worse: They are unable to pay their suppliers abroad because cross-border bank wires are suspended, and the have only limited access to their sales income. Even the best-performing Greek businesses that are still making sales abroad can’t use their hard-earned cash.
With the banking system locked down, capital controls prevent Greek citizens from accessing cash and this disrupts the economy. The Irish company Spartan Route has come to the rescue of Greek businesses with an innovative service proposal: They will invoice their Greek clients’ foreign customers in euro, collect the payment, and send bitcoin back to Greece.
Their proposal to Greek businesses is simple and crystal clear: 1. Invoice Spartan Route for your exports, 2. Deliver your goods as normal to your customer through your current supply chains; 3. Spartan Route pays you with bitcoin; 4. Spartan Route invoices your customer for euro.
Spartan Route believes that the Greek people are being politically and financially blackmailed by creditors due to the economic stranglehold on the country’s financial system. The company’s blog states Spartan Route’s position loud and clear:
“The Greek people now witness the noose of economic and political oppression dangling at the hands of a Mr. Jean Claude Junker and his bandit of EU mercenaries. The sovereignty of the nation has continuously been diluted by the stark sanctions imposed by the EU and the ECB. The current creditors’ demands on the Greek nationals, if accepted, will propel Greece further into an amputated brand of sovereignty.
“Bitcoin can help the people of Greece,” continues Spartan Route. “The Greek people are wrestling their sovereignty back from the EU, and Greek nationals can chart their own economic course through the adoption of Bitcoin. Bitcoin can also help the Greek export industry to stay intact, economic sanctions make it near impossible from many Greek business to operate and survive. The adoption of Bitcoin can help transcend these trade barriers, opening up Greek exports to the world once more.”
Photo (CC) Brian Solis / Flickr