Precious Metals Are Not The Answer To Greek Capital Controls

Bitcoin is the answer to a lot of financial problems in the world, especially the part where consumers and enterprises are struggling to move funds in and out of the country. Relying on precious metals transfers is not the best solution either, as a recent confiscation by border police in Greece.

Also read: BitX Users Face More Questions Regarding The Nature of Trading Bitcoin

Smuggling Gold Bars Is Not The Right Move

As most people are well aware of by now, moving money in and out of Greece is still a pain in the rear. Banks are still exerting very tight capital control over consumer funds, forcing individuals and businesses to look for alternative financial solutions to send and receive value.

Gold has often been looked at as a potential replacement for cash or bank accounts, although it is rather difficult to transport the precious metal across countries. An example of how difficult it is to move gold across borders comes in the form of a recent story leading to the confiscation of precious metals when passing through customs at the Greek-Turkish border.

Although there is a case to be made of how transferring 18 bars of unrefined gold across the border in a taxi might not have been the best idea, it also goes to show the struggles Greeks are dealing with. With limited access to bank accounts and cash, there is hardly an alternative system to speak of. Bitcoin would be an obvious solution, but buying and selling the digital currency requires either access to an exchange or enough cash to buy it from an ATM.

Keeping in mind how the total confiscation of gold is worth roughly 800,000 euros, smuggling this gold out of the country also means the culprits were trying to evade close to 200,000 euros in taxes. It is doubtful the Greek state will take this offense lightly, as all of the suspects have already appeared before a prosecutor.

The financial struggle in Greece is far realer than most people give it credit for. Having limited to no access – or use – for bank-controlled mediums of payment is something most people can only imagine. Barter trades have become a lot more popular in recent months, although the government could shut down those centralized platforms at any given time. A solution has to be found in Greece, and while Bitcoin makes a strong case, it might not be the most feasible option for all parties involved.

Source; ZeroHedge

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