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Wales Developing Local Cryptocurrency to Support Mutual Credit System

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Wales to Develop Local Cryptocurrency to Underpin Mutual Credit System

Wales is planning to launch its own digital currency as per Business Live’s report on Oct. 14. It aims to help businesses exchange services or products without the need for traditional payments.

Celyn is a digital currency network that helps businesses exchange services and products without using GBP. Furthermore, it is based on a Sardinian model called the Sardex.

Celyn will also boost the country’s economy by £250 million over the next decade as per the report.

The Welsh Government awarded Circular Economy Wales (CEW) £100,000 from the £4 million Foundational Economy Challenge Fund to develop the system. The funding will cover both a consultation and a pilot program in North Wales as per the report.

A Stronger Community

Eifion Williams (CEO of Circular Economy Wales) said:

“The Sardex benefited the Sardinian SME economy to the tune of 50 million Euros last year alone…”

Moreover, Williams explains that the vast majority of the economy of Wales is fueled by SMEs just like Sardinia. So the idea can boost the Welsh economy as well. He 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.”

According to the report, Dr. Paolo Dini will support the pilot program, a research fellow at the London School of Economics. He is also one of the Sardex founders.

Dr. Dini stated:

“The Sardex has been replicated successfully in many parts of Italy, so it’s very exciting to be able to pilot this in Wales. This will be the first replication outside of Italy. I think the similar economic factors bode well, our challenge will be ensuring that businesses understand the benefits, and will begin consultation shortly.”

A flexible financial system

Lee Waters (Deputy Minister for Economy and Transport) also added:

“Our Economic Action Plan sets out the direction for a broader and more balanced approach to economic development focused on making communities stronger and more resilient. The Foundational Economy Challenge Fund is fundamental to this and I’m intrigued to see the results of this mutual credit system pilot by Circular Economy Wales.”