The Italian government is mulling a terrifying currency scheme that could plunge the eurozone into crisis – and trigger mass bitcoin adoption. | Source: Shutterstock. Image Edited by CCN.
By CCN Markets: The Italian government is mulling the decision to issue a “parallel currency” in a move that could plunge the eurozone into crisis – and provide the best case yet for mass bitcoin adoption.
In the same week, the Italian deputy prime minister proposed a tax grab on cash and valuables stored in safety deposit boxes.
These crisis policies expose deep cracks in the fiat monetary system. The move prompted money historian Rebecca L. Spang to call for a new foundation of money.
“The time has come for a new, more equitable, version of money.”
While she doesn’t refer to cryptocurrency directly, the Italian crisis does build a compelling argument for bitcoin.
Explaining Italy’s “parallel currency” crisis
The proposed currency bills, known as mini-BOTs, are basically treasury bonds (buono ordinario del tesoro). But in a twist of economic rules, they’d be issued and accepted as a form of payment by the Italian government, circulating alongside the euro.
Mini-BOTs were initially conceived to pay back Italy’s insurmountable debt mountain (yes, paying debt with more debt). But the government would also accept the mini-BOTs back as payment for taxes, train tickets, and gasoline.
Many euro-skeptics may also adopt the new currency as an act of rebellion against the euro.