Bitcoins Could Save Greece from Debt Crisis: Says Bitcoin Founder

Xu Mingxing, founder of OKCoin, one of China's largest bitcoin exchange platforms, said that the virtual currency, bitcoins, could be the savior of the Greek debt crisis.

European leaders have called on Athens to make credible and serious proposal to resolve the situation, as Greece is on the brink of being forced to leave the eurozone after Greek voters turned down an international bailout offer via a referendum on Sunday.

The report said that the operation of Greek banks have been shut down as funds dry up and bank transfers and ATM withdrawals were also restricted and continued to be enforced. As part of emergency reforms to save the country's financial system, major banks in Greece will have to enter into mergers.

The Global Times reported that only the bitcoin ATM in Athens has continued to operate during the crisis. The value of bitcoins has also steadily increased over the last few days, with OKCoin showing that the virtual currency grew to as high as $278 shortly before midnight on July 6.

Statistics from bitcoin trader Cryptocurrency further confirmed that the interest of Greek customers in bitcoin is on the upsurge. The total number of bitcoin transactions in Greece reportedly rose by 400 percent in May and June, as BTCGreece, a Greek bitcoin trader, has asked customers to deposit at least $55.40 worth of bitcoins in their accounts,.

Xu expressed belief that bitcoins could be the Greek people's "last straw." Xu also noted that the decentralized nature and global liquidity of bitcoin can allow Greek people to be free from the capital controls of traditional banks, and if Greeks are willing to accept bitcoin, they will be given more leeway.

The OKCoin founder added that bitcoins can preserve the value of their funds as bitcoins are also traded with very low transaction costs.

"I believe in near future the value of bitcoins will become more and more visible," Xu remarked.