Canadian city introduces its own cryptocurrency to boost its economy

Canadian city introduces its own cryptocurrency to boost its economy

It’s no secret that the Canadian city of Calgary has an affinity for cryptocurrencies. Due to its relaxed regulations over the crypto and blockchain ecosystems, it has long been a go-to destination for businesses in the industry and is now looking to cement its position by kicking things up a notch. Calgary is preparing to launch its own cryptocurrency.

The “Calgary Digital Dollar” will be made available within city limits. It is not designed to replace the Canadian dollar but, instead, to be used in tandem with the country’s national currency. Ideally, the cryptocurrency will give the local economy a certain jolt of energy.

Area businesses will be able to accept up to 100% of the payment for their goods or services in the Calgary Digital Dollar. They won’t be able to opt out of the initiative, with an obligatory minimum requirement of 10% of the payment being able to be paid in the digital currency.

Alberta’s finance minister Joe Ceci asserts that crypto will play an important role in the future of currency and that Calgary’s new offering will serve as an impetus to boost a barter and trade system that is vital to local economies. Speaking on behalf of Alberta’s government, he added that officials “support the work” of the Calgary Digital Dollar “in every way.”

The introduction of the digital currency could prove to be a vital test of how crypto can be easily integrated into a local economy. When citizens use the crypto to pay for certain goods or services, they will be given Calgary Digital Dollars as rewards. Those can then be used to pay for future purchases, which will expand the infrastructure until the digital currency is spread throughout the entire city. It’s no different from how any national currency has been introduced.

A community in South Africa, Orania, introduced its own crypto this past July. The E-Ora is issued by the Orania’s chamber of commerce and is available only to those living in the community. That project has reportedly been very successful. Transaction fees, as well as the degree of difficulty in using the digital currency, have dropped significantly and the same is expected with Calgary’s new project.

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