A small town in South Africa called Orania has denied claims that they are racist, but from what can be seen in the community, only white people are allowed to reside there. The town is completely owned by a particular community corporation. The city was created after the end of Apartheid and so far, they’ve had their own currency. At this point now, they feel it’s time to have their own cryptocurrency.
The community’s native currency is called the Ora. The crypto is basically a stablecoin and its pegged to the South African rand.
Currently, a digital equivalent of the South African rand is now available. Both the Oran and its equivalent are controlled and issued by Orania’s kind of central bank, called OSK or The Orania Spaar en Krediet Kooperatiewe Bank. The OSK was created decades ago by a government worker who was retired early due to anti-apartheid measures.
The former government was nearly composed of white people, even though they are a minority in South Africa. As policies changed, several retention and hiring practices were passed. When Lukas Taljaard got to Orania, there was nothing when it came to financial infrastructure. To assist, Lukas began to cash people’s checks in the comfort of his garage for a fee of 5 rands.
Before long, Lukas had a bright idea and it was to issue private money for the 9000 people community, which would inadvertently give them some freedom from the structure of traditional banks. On condition that there are funds, the system will be stable.
One thing about the process is that it involves a lot of trust, and it has to be transparent. Orania runs its own servers and issues new currency to residents and tourists who wants to visit the small town. The town is a gathering of white people in the savannahs of South Africa. Orania legitimately claims loyalty to Afrikaners, or individuals who hail from Dutch settlers. Those who live in Orania say that are not shutting out other races from applying to live in the community, but till date, a black person has never lived in Orania.
USE OF ORA FOR INDEPENDENCE BY AFRIKANERS
Politically, however, the Oranians are inspired by things like maintaining the Afrikaner culture. They want their language taught in schools and it should also be kept alive in their community are their main priorities, instead of racial politics.
The e-Ora is the crypto version of the Ora, it is minted when a person goes to their central bank and spends a Rand or an Ora to buy it, at a ratio of 1:1. Individuals can later redeem their money rand when they are leaving town. Some areas in cities close by accept Ora, and will do so too with the e-Ora, but these places are far and few. The purpose-built crypto has one primary purpose: to ease transactions within Orania.
The major incentive for creating an independent currency was not only based on symbolic disconnect and cultural pride with the politics of the country. The community saw it as a way to reduce theft, specifically from outsiders.
The currency does not have much value outside of the town. Unlike traditional cash, if you steal an Ora, the only way it can have value is if you exchange it with someone in the community.
As such, as a resident of the city pointed out, crime is almost non existent. Although a racial component may have added to the statement, what they mean is that the system could work anywhere.