Cryptocurrencies are slowly replacing fiat currencies which are similar to what many cryptocurrency enthusiasts are predicting. A Russian town called Kolinovo has had enough problems with the Russian Ruble that they have started adopting their own crypto-token called Kolion.
It all began when a farmer by the name of Mikhail Shlyapnikov who used to be a banker wanted to take out a loan for his farm. The interest rate for the loan was a mind-boggling 12% which he found would be absurd for future operations of his farm.
Shlyapnikov decided to create his own fiat currency to be used within his local community. With paper, he printed kolion’s! These paper currencies were banned in 2015 by the Russian court. In April 2017, many Russians got together and raised $500,000 to create a cryptocurrency called kolion via ICO. They used the WAVES platform to start the process of dispatching tokens.
“I didn’t want to suffocate and be a slave of the banks. So I had to invent my own money. And I did it. I’m my own bank, government, regulator,” Shlyapnikov told news channel CNN.
As of now, the kolion is backed by roughly 500 BTC which is valued at $3.7 million at the current market price. There are 2 million kolions in circulation, and the value has increased since the inception of ICO.
Kolion cannot be mined but purchased through exchanges or earned by helping residents of Kolionovo with various activities such as construction or farming. The community of Kolion users calls this process ‘Plowing!’
The Ruble has slowly diminished in usage in the towns and villages near Kolinovo, with Kolion being used by many instead.
The fascinating Kolion might slowly replace the Ruble given the tremendous pressure against Russia concerning sanctions. The Ruble has already lost half its value since 2014, and thus Russia is hoping cryptocurrencies will help to be part of the global economy.
With digital transactions such as Visa and Mastercard also denying specific services to Russians, the Russians are looking at cryptocurrencies as the answer for global payments.
The Russian World Cup will be an excellent opportunity showcasing to the world how Bitcoins and other cryptocurrencies will help make hotel bookings and other payments easier in Russia.
Image Source: “Flickr”
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Source: Toshi Times
Original Post: A Russian Town Replaces Ruble With Own Cryptocurrency
