Yanis Varoufakis' party MeRA25 outlined its proposed digital transactions system, part of its campaign platform ahead of national elections on May 21, on Thursday.

The 'Demetra' system, the party said in a statement, is neither a cryptocurrency nor a regular currency. It is a public system of free digital transactions in the euro currency between the state and private individuals, as well as among private individuals.

Under Demetra all electronic transactions would be free of charge, the party noted, while an added benefit for users would be the fact that they can get tax breaks equivalent to an interest rate higher than those offered currently by banks.

Deposits would be guaranteed by the Greek state, the ministry of Finance to which the TaxisNet system for filing taxes belongs, and the actual software on which Demetra is being built, added MeRA25.

MeRA25 also noted that even a minor transfer of money into Demetra would give banks an incentive to reduce their commissions, to increase deposit rates and to "stop exploiting their small depositors."

Demetra would provide the state with the fiscal flexibility to deposit subsidies for vulnerable groups, thus performing a social benefits policy, the party noted in a tweet, without restrictions imposed by lenders.