Greek Island To Test Cryptocurrency Program

The tiny Greek island of Agistri has been particularly hard-hit by the nation's financial troubles. Capital controls forced residents of the tiny island to travel by boat to the mainland in order withdraw their daily ration of cash after Agistri's one ATM quickly ran out of cash. The island, considered one of the most beautiful in Greece, survives on tourism which has taken a hit since the crisis. With capital controls keeping small businesses from paying vendors, Agistri has fallen off the radar as big name companies who are better able to pay their bills typically take visitors to larger, more well-known islands.

With very few options left to keep the island's economy running, policymakers in Agistri have

to pilot a new cryptocurrency called Nautiluscoin. Nautiluscoin was created in an effort to give people an option outside of the traditional banking system, something Greeks are likely to embrace with all the trouble they've come by over the past few months. Transactions on Nautiluscoin will be facilitated through Drachmae.Money, which will charge users a fee. The fees will be collected by the Nautiluscoin Stability Fund, which in turn uses the money to buy gold in order to back the currency.

Many saw the Greek crisis as an opportunity for cryptocurrencies to shine. As an alternative to traditional banking, digital currencies gave Greeks another way to make cross border transactions at a time when banks were limiting the flow of cash outside of Greece. With trust in Greece's financial system deteriorating, many believe that cryptocurrencies have a chance to expand in the wake of the crisis.