If you insert a parallel currency into this sequence, you can delay the moment of default and gain a lot of leeway.
Varoufakis outlined, in a detailed blog post 12 months ago, how a Bitcoin-like virtual currency could be used to get around the ECB’s refusal to boost demand through quantitative easing. Just like Bitcoin, it would be exchangeable one for one with euros. But it would be issued by the state – and if you were prepared to hold it for two years, you would earn a profit paid for by taxes. For this reason, Varoufakis called it “future-tax coin”.
If the Greek government issued a parallel digital currency, and forced banks and businesses to use it, this would boost the money supply in defiance of the policy of the European Central Bank, said Varoufakis. In addition, he predicted, the currency would provide “a source of liquidity for the governments that is outside the bond markets, which does not involve the banks and which lies outside any of the restrictions imposed by Brussels or the various troikas”.