Canada and its famous city Calgary has long been a significant proponent of cryptocurrencies. With relatively lax sets of laws and regulations regarding the budding crypto markets and blockchain industry, Calgary presents itself as a de facto Canadian safe haven for cryptocurrency enthusiasts.
But in what is potentially its most bullish piece of news to-date, Calgary has announced its intention to launch its own cryptocurrency in an effort to boost the local economic sector within its borders.
The currency is to be known by the name “Calgary Digital Dollar,” and it will be used only within the Calgary city in the Alberta Province in Canada. According to press releases by the finance minister of the city, the currency will not replace, but will be used in conjunction with, the Canadian Dollar (CAD). The project is being headed by Joe Ceci, the finance minister for the province of Alberta.
The goal of the new currency is to boost local economic engagement through incentivization via the use of digital currencies. Local companies will be allowed to accept as much as 100 percent of the payment for their product or service in the form of the Calgary Digital Dollar, but they will be obligated to accept at least 10% in the currency.
Local Business And Blockchain
Finance minister Ceci outlined his belief in the importance of digital currencies during the official launch earlier this year. He outlined that the new system will encourage the barter and trade system upon which local economies consistently thrive.
Because of his belief in the system, he spoke on behalf of the entire Alberta government, saying that they “support the work” of the Calgary Dollar “in every way.”
Local businesses will be able to gain access to an entirely new group of potential customers through the use of the Calgary Dollar website. When the citizens use the currency to pay for specific things in the local economy of Calgary, they are rewarded with additional rewards in the form of the same currency, which they can then use to pay for things like transit tickets and grocery purchases.
A Continued Trend
Calgary is not the first city to try such an experiment. A South African community known as Orania integrated their own cryptocurrency in July of this year. The digital currency is called the E-Ora and is issued by the Chamber of Commerce in Orania to be used exclusively by people in the small community of 1,600 people.
The E-Ora has been largely effective, as some sources have reported a decrease in transaction fees and difficulty of transaction within the community for its users. Moving forward, the city of Calgary hopes to gain access to some of these benefits.
As the currency develops, the proponents of this new system hope that it will incentivize more involvement in the growing local economy, giving both users and companies in Calgary yet another way to interact in a growing and expanding economic scene inside of Canada.