A private city in Norway will base its economy on its own cryptocurrency.
A private city project in Norway will make use of its own crypto-active, City Coin (CITY) as the only official payment method for the exchange of goods and services, according to a press release released this February 12.
A private city is a city that is owned and operated exclusively by individuals and private organizations and provides all public services for itself. This city is called Liberstad and is located in southern Norway, a country that due to its climate and electricity costs has been attractive for cryptocurrency mining.
City Coin will be used, among other things, for the payment of municipal services, salaries and for the financing of civic projects.
For the mining of this cryptoactive, the Participation Test (PoS) is used and the new coins will be donated to three non-profit foundations destined to the functioning of the city.
Its developers plan that City Coin can be exchanged for other cryptoactives and for fiduciary currencies through the Liberstad Block Exchange exchange platform.
For now, the cryptocurrency is quoted in only one exchange house, so, according to the portal, it was necessary to set an arbitrary exchange rate of 0.12 dollars for each City Coin. With this rate, the hourly wage of each worker in the city would be calculated.
The CITY block chain has been called City Chain. According to its developers, it will allow “the design, implementation and use of next generation services for smart cities and their inhabitants”. These services include the registration of properties and vehicles, identification, smart contracts, registers and notaries and insurance.
To facilitate the use of these resources, citizens will have available the City Hub interface, a cryptoactive keychain where they can also place bets for the Participation Test. This portfolio is available for desktop devices.
The private city of Liberstad was founded in June 2017 on the Tjelland farm. According to its declaration of principles, it is a private city, but not a State, so its inhabitants must follow the laws and regulations of Norway.
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