Chris Cook spotted this interesting analysis of the situation in Cyprus by Frances Coppola. There are now effectively two Euros, one for Cyprus and one for the rest of the Eurozone, because credit controls now in place in Cyprus mean it is effectively separated from the rest financially. People will have to use cash for most transactions.
This raises the question of whether people will begin to use ‘alternative currencies’. By this Coppola seems to mean other major currencies such as the Pound Sterling or the Turkish Lira but also for ecurrencies. It will also be an interesting test case for much more ‘alternative’ forms of exchange such as local or complementary currencies, barter, gift economies, community exchanges. Certainly, this will appeal to the ordinary Cypriots.
He speculates that serious experiments might be stopped by the government, as they have been in the past. It will be very interesting to watch!