City of the United Kingdom launches its own cryptocurrency 'HullCoin'

The port city of Hull, in the United Kingdom, could remunerate volunteers and active community workers by offering discounts at local stores and tax reductions through a cryptocurrency. The government has supported the creation of a cryptocurrency for this purpose called HullCoin, which is stored and transferred through a Blockchain network.

The initiative has raised about US $ 286,000 from government contributions and charitable foundations. If properly functioning, the concept will be promoted at the national level. At this point, other UK cities such as Bristol or Lewes have already tested their own complementary cryptocurrencies to support the national economy.

However, they have operated with fiat money, while Hull will use a cryptocurrency. In addition, people will not be able to buy HullCoin with cash, as is the case with Bristol Pound or Lewes Pound. Residents will have to offer "good works" in return.

The non-profit organization Kaini Industries is responsible for the development of technology in the project. Its co-founder and CEO, David Shepherdson, said that these coins would be similar to loyalty cards in corporations. According to a Financial Times report, Shepherdson said:

Companies love discounts because they leave a mark. But this is a discount without devaluing the brand. Each discount they give for a HullCoin links them to something that the local community supports.
In this way, local retailers will offer HullCoin owners discounts ranging from 10% to 50%. To earn cryptocurrencies, Hull residents must participate in various activities, such as helping children and the elderly, managing youth clubs or even quitting.

Once the project is approved, cryptocurrencies will be issued by local authorities, schools, charities, community groups, prisons and other local agencies. HullCoin is a project that is being sponsored by 800 volunteers, 73 radio stations and 140 retailers. If everything goes as expected, in January of next year the cryptocurrency will be launched.