Liberstad, Norway’s first and only private city, has adopted City Coin (CITY) as its official currency, according to this report. City Coin is the cryptocurrency that runs on City Chain, Liberstad’s Proof-of-Stake blockchain. City Coin will be the only medium of exchange in Liberstad and is the medium of exchange and payment for services on the City Chain.
Liberstad is part of The Libertania Project which aims to establish private cities and communities that are based on “anarchism and the non-aggression principle”. Liberstad’s website describes a private city as one that is “owned and operated exclusively by private individuals and/or organizations and provides all of the public services for the city itself”. Although it is a private city, it is not its own state and must follow Norwegian laws and regulations.
The coins were premined and 55 percent have been donated to Private City Fund, whose mission is to help establish private cities and other communities founded upon the voluntaryist philosophy.
Workers To Be Paid In City Coin To Avoid Using Fiat
Liberstad do not want to pay any workers in fiat money and everyone to date has worked voluntarily, but they will now be paid in City Coins which have come from the premine. The coins can be used for the payment of services, employee wages and for funding civic projects. Inhabitants can “pay for anything ranging from haircuts, a dozen local eggs or an artisan loaf of bread”. They can also be exchanged for other cryptocurrencies or fiat currencies on Liberstad Block Exchange.
City Chain has created a smart city platform that hosts City Hub, the wallet where you can send, receive and store City Coins. In the wallet you can also stake your coins and receive rewards in the form of new coins. The press release states that the inhabitants can access it by using a municipal app, and will be able to easily “interact with the community, manage their identities, create city-wide initiatives or vote on existing ones, register property, contract insurance and more”.Established in June 2017, Liberstad is about 45 minutes from Kristiansand, Norway’s fifth-largest city. The one hundred individuals who purchased Liberstad land hailed from 25 different countries and 80 percent of the initial sales were completed with Bitcoin.