Wales plans to test and subsequently launch its own cryptocurrency in order to stimulate the economy of small and medium-sized businesses in the country.
The local news agency Business Cloud reports that the Wales government has allocated £ 100,000 from the Stimulus Fund for Economic Development to develop the system. Funding will cover both counseling and pilot programs in North Wales.
The project idea is based on the Sardex mutual lending system introduced in the Italian region of Sardinia. Eifion Williams, CEO of Wales’ digital currency company, praises the system. According to him, only last year it brought a profit of 50 million euros to the local economy of small and medium-sized businesses.
Researcher from the London School of Economics and creator of Sardex, Paolo Dini, supports the project and notes the similarities between the two regions. Williams explains that, as is the case with Sardinia, the economy of Wales is fueled by small and medium enterprises. He notes:
“If Wales introduced Sardex in 2008, and the system showed the same growth rate as in Sardinia, Welsh SMEs would have already increased their revenue to £ 256 million in additional turnover.”
Deputy Minister of Economy and Transport Lee Waters explains that the government’s plan “defines a direction for a broader and more balanced approach to economic development that will make local communities more effective.” He notes that the fund that finances the project plays a decisive role in this regard:
“The Economic Growth Facility plays a decisive role in the initiative, and I was intrigued when I saw the results of the Mutual Credit System Pilot Project presented by Circular Economy Wales.”
In December last year, it was reported that the Canadian city of Calgary issued its own digital currency, which can be used to pay for travel tickets, purchases of products, as well as other goods and services, which stimulates the local economy.