In an aim to boost its local Small and Medium Enterprises (SME) economy, Wales intends to test and later on unveil its own cryptocurrency.
On Oct. 15, Business Cloud — a Local news outlet — reported that the Welsh Government had taken £100,000 out of the £4 million Foundational Economy Challenge Fund allocation and channelled it towards the development of the system — specifically, to cater for consultation and a particular pilot program to be undertaken in North Wales.
Idea implemented somewhere else
Sardex is evidently the basic idea behind this project. It is actually a mutual credit system that the Italian island and region of Sardinia has commonly implemented.
Even the CEO of the firm behind the Welsh digital currency, Eifion Williams, has poured praises on the Sardinian system. He went ahead to claim that in last year alone, Sardinian SME economy was able to benefit from the system to the tune of about 50m euros.
Paolo Dini — Sardex founder and also a research fellow at the London School of Economics — has raised support for the project drawing on the similarities between the two regions.
The idea is capable of boosting the Welsh economy just like Sardinia — according to Williams — since the SMEs fuel the vast majority of Wales’ economy.
“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,” he added.
Local economy resiliency
Likewise, Lee Waters, Deputy Minister for Economy and Transport, added that economic action plan of the government is veered towards the implementation of economic development-focused broader and more balanced approaches that make communities more resilient.
In another instance, South Korea’s second-most populous city after Seoul Busan also expressed its interest in launching a local cryptocurrency back in July.