No Grexit, But Bitcoin Startups Working to Skirt Capital Controls

It seems like a while since the Greece bailout deal was reached, although the Tspiras government is having a tough

It seems like a while since the latest Greece bailout deal was reached, although the Tspiras government is still having a tough time working through it.

Two Bitcoin startups are thus taking measures not only in preparation for the next crisis, but even for the present. The country’s economy is in ruins, a situation amplified by the imposition of capital controls that have still not be fully lifted.

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Indeed, businesses had to get creative during the peak of the crisis. Some engineered their own versions of digital money. Meanwhile, demand for bitcoin exchange services from Greek clients reportedly surged.

Cubits.gr, a bitcoin services provider, and BTCGreece, a local bitcoin exchange, have thus teamed up to help local citizens move cash out of the country to suppliers and business partners.

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Tim Rehder, one of the co-founders, commented:

“With Greece’s myriad of financial problems at a record high, economic relationships are strained by the current credit controls as businesses grapple to seek permission in order to pay suppliers, and individuals are limited to withdrawals of EUR 60 per day. As the only operational bitcoin exchange in Greece, BTCGreece allows Greeks to purchase bitcoin and remit defined payments abroad. Cubits’ arrival in the Greek market will provide the professional solution to the problems at hand.”

The team is focusing on voucher payments backed by bitcoin, as well as point of sale (POS) terminals and ATMs. The last crisis reportedly motivated the opening of Greece’s first 2-way bitcoin ATM.

The operation reportedly supports 15,000 wallets and is processing 500,000 transactions monthly. Finance Magnates has not yet been able to verify these figures.

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