The private city of Liberstad in Norway has adopted the City Coin cryptocurrency as its official currency, according to a press release issued this week. The blockchain-based coin will reportedly be the only accepted medium of exchange in the city, and can be used for all payments, pages, and commercial transactions.
The coin runs on the City Chain blockchain, which Liberstad has described as the “beginning of the Smart City Platform which will include many different services built on top of City Chain and/or integrated with other blockchains. It will include property and vehicle registration, identification system, smart-contracts, insurance and more.”
For Liberstad, the coin’s adoption is the culmination of three years of development and testing. As part of the Libertania Project, which is committed to developing “private cities that are based on anarchism and the non-aggression principle,” Liberstad was created to be a new kind of society where individual freedom is secured by eliminating government “coercion, blackmail, surveillance or unnecessary violence.”
City Coin can be used throughout Liberstad’s closed, internal market. That market was designed to prevent the use of national fiat currencies but did allow trades using commodities or digital currencies. Liberstad had previously announced that the value of the coin would initially be set at 1 NOK (0.12 USD) per CITY.
The press release also noted progress in the development of Liberstad’s smart city platform, City Hub, and described some of City Coin’s benefits for residents:
Using blockchain as its basis, City Chain has created a smart city platform that hosts a suite of features for emerging cities like Liberstad. Foremost amongst those features is City Hub, an intuitive and simple-to-use dashboard for smart city inhabitants. By accessing City Hub using a municipal app, citizens can interact with the community, manage their identities, create city-wide initiatives or vote on existing ones, register property, contract insurance and more.
While the broader features of City Hub are under development by the City Chain Foundation, the platform's native currency, City Coin, is tradeable and functional today. City Coin is based on a proof-of-stake algorithm which, unlike Bitcoin's proof-of-work model, is both environmentally friendly and simple to participate in for those without high-end mining rigs. Owing to the elegance of the PoS model, staking City Coin is easy and rewarding. By holding CITY in the City Hub wallet, stakers receive 20 CITY for every staked block, providing them with passive income in return for securing the network.