Calgary and their national digital currency
Calgary will become Canada’s new financial center, becoming the first city with its own national digital currency.
Calgary Dollars Project Manager Gerald Whitley commented in his interview that the project has many advantages. After all, it not only saves the Federal currency of the population, but also allows to establish new commercial communications and in the future will support local business.
Unlike other cryptocurrencies such as bitcoin or Ethereum, Calgary money is not bought or cashed. Residents can earn Calgary Digital Dollar by placing ads for products or services they would like to sell. One such announcement brings 5 dollars. Surveying and attracting new users can also attract a certain amount of Calgary dollars to the user’s pocket.
Use of national digital currency
In fact, such a currency has been existing in the city since 1996. Even then, citizens and businesses offered goods and services either in direct or partial exchange for a local bill.
However, the novelty of Calgary Dollars was its own application that allows residents to store currency on their devices. Pat Gyun, the owner of the local Sunnyside Market grocery store, has been accepting up to 20% of Calgary Dollars in food purchases for many years.
“Currently, few people use Calgary Dollars, but I think the new digital platform can help to it take off again,” he told HuffPost Canada, adding that only a few people used the currency a couple of years ago, but now the percentage of application is clearly growing.
According to the owner of Sunnyside Market, the store sends Calgarian Dollars back into the system, funding community gardens, art projects, and social justice activities.
According to experts, local currencies, although not very popular now in Canada, will have many advantages in the future. This is especially evident in business, because the digital dollar gives businesses another way to build trust with their customers.
Trust relationship between consumer and producer is something Calgary Dollars aspires to. According to the data, more than 350 individuals and legal entities currently accept currency. Local residents can already buy anything for them – from language lessons and house cleaning to renting premises or a cup of coffee.
Alfred Legar, Professor of Finance at the University of Calgary, said that the project will really be able to create a new business sector when it is able to gather local sellers and residents. It helps to distinguish from the general mass of small local shops that offer unique goods and services. It also raises public awareness about its economy.
However, Legar noted that although local currencies have many advantages on a small scale, the government needs to introduce some restrictions.
“Local currencies are not the only thing you should use… they should not replace the Federal dollar, otherwise people may be without real money.”