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The news comes amid growing fears that Madrid will struggle to impose control over the breakaway region, with experts predicting more of the violence and civil unrest seen during the October 1 referendum. The Catalan government declared the region independent on Friday, but hours later Mariano Rajoy's Spanish government voted to enact Article 155, bringing Catalonia under the direct rule of Madrid. Spain has announced new regional elections to be held in December, and said sacked Catalan president Carles Puigdemont was "welcome" to stand evan though Spanish prosecutors have announced plans to charge him with "rebellion".

Mr Pudigemont has called on supporters to "democratically oppose" Spanish rule in a television broadcast hours after his dismissal. Now hard-line seperatists are said to be working on a new blockchain currency similar to the "Plan B" initiative cooked up by Syriza in the midst of the Greek financial crisis, The Telegraph reported. Bareclona crytographers are reportedly taking advice from cryptocurrency expert Vitalik Buterin, founder of blockchain platform Etherium, and programmers in digital-savvy Estonia.

GETTY Catalan tech experts are working on a digital currency free of Spain, the Euro and the ECB

The idea is to create a currency free of control from both Spain and the European Central Bank. Catalonia had previously been warned that it would be thrown out of the Euro if it became independent, losing access to the single market and all the other freedoms of EU membership. Like Brexit, opponents of Catalan independence view the move as an extraordinary act of politicial and economic self harm. But independence of the wealthy region would also pose an unprecedented threat to the EU far worse than that of Brexit, in large part because of its eurozone membership.

GETTY There are doubts Mariano Rajoy's government can bring Catalonia under control

According to the BBC's economic correspondent Kamal Ahmed, a crackdown on Catalan independence would be welcomed by eurozone states since the future of the single currency depends on it. Mr Ahmed told Radio 4 Today: "Markets are quiet at the moment, but they will now determine whether this political crisis turns into an economic crisis. "Catalonia is a big economy, its GDP is £196billion a year, it has a bigger economy than Portugal. "This is worse than Brexit, simply because there is absolutely no rulebook for a country leaving the eurozone, not just the EU."

Catalonia latest pictures: Violent clashes erupt Sat, October 28, 2017 Catalonia's parliament voted to declare independence from Spain and proclaim a republic, just as Madrid is poised to impose direct rule on the region to stop it in its tracks Play slideshow REUTERS 1 of 8 A pro unity demonstrator is stopped by Catalan Regional Police officer during a protest after the Catalan regional parliament declared independence from Spain in Barcelona