After the introduction of cryptocurrencies with the induction of bitcoin 10 years ago, several countries advocating the idea of blockchain-based cryptos launched their own cryptos. While some have already launched their cryptos, many are planning to do so. In the latest, Wales is planning to come up with its own cryptocurrency.
The aim behind launching the cryptocurrency, Celyn, is to facilitate businesses exchange services or products by providing an alternative to traditional payment options. It is expected that Celyn will boost the economy of the country in the upcoming decade by as much as £250 million.
At the moment, the Welsh Government has allotted funds of £100,000 worth to Circular Economy Wales for devising the cryptocurrency. It was revealed that the government had a £4m Foundational Economy Challenge Fund from where a £100,000 was taken out to finance the country’s own crypto project.
Moreover, it was unveiled that the motivation behind launching a cryptocurrency was Sardex, a mutual credit system in the Italian island and region of Sardinia. Eifion Williams, CEO of Circular Economy Wales, elaborating on the bright side of the Sardinian system and outlining similarities between Wales and Sardinia said:
The Sardex benefited the Sardinian SME economy to the tune of 50m euros last year alone. Wales is similar to Sardinia in that SMEs make up 99 percent of our businesses, so this has the potential to significantly boost our economy.
Further explaining the impacts Williams added:
If Wales had initiated a copy of the Sardex in 2008, and it had followed the same growth trajectory, Welsh SMEs would now be strengthened to the tune of £256m in additional turnover
Apart from the CEO, Deputy Minister for Economy and Transport, Lee Waters also commented on the initiative taken by the government. According to Waters, the country’s action plan encompassing the crypto project is expected to make communities stronger and more resilient by enhancing economic development.
Surprisingly, the founder of Sardex Dr. Paolo Dini who is a research fellow at the London School of Economics will also look after Celyn. After witnessing the success of the Sardex in most parts of Italy he is very excited to pilot Celyn in Wales. Sharing his take on the project his exact words were:
I think the similar economic factors bode well, our challenge will be ensuring that businesses understand the benefits, and will begin consultation shortly.
Previously, Venezuela launched its own crypto Petro to deal with its unstable economy and devaluing fiat currency Bolivars. After the launch of Petro, the president of Venezuela, Nicolas Maduro forced banks and other institutes to accept Petro. After ordering banks, the Maduro government also tried to introduce Petro on an international platform and use it in global trade.
Besides Wales, China has also shown interest in launching its own cryptocurrency. After the launch of Facebook’s crypto project Libra, the Chinese bank, People’s Bank of China (PBoC), brought its plan to introduce a cryptocurrency. Let’s see how the crypto initiative planned by Wales goes in the future.