Norway’s First Private City Launches Its Own Cryptocurrency

[Editor’s Note: This article originally supplied a misleading stock image of Bergen, Norway. That image has been removed to avoid confusion since Liberstad is essentially an unoccupied farm at present. The content of this article is meant to reflect the plans for a cryptocurrency-based society in a private-city project — not meant to suggest that a major city in the country is starting its own cryptocurrency.] The self-professed first ‘free-from-government autonomous city’ in Norway has announced the launch of City Coin (CITY) as its official currency issued on the smart city platform. According to a recent press release, the cryptocurrency will become the only means of exchange and the currency of all settlements in Liberstad, including services and wages. Norway’s first self-proclaimed ‘private city’ is based on the concept of libertarian ideas and non-aggression principles. It purports to have no traditional authorities and is governed by a decentralized platform. Founded in 2015, Liberstad aims to build a completely autonomous society free from government coercion and surveillance. The city has reportedly sold over 100 land plots to people from around the world.

Meet City Coin and City Chain

People will — if all goes according to plan — eventually use CITY in virtually all daily activities to pay for their purchases, services, and utility bills in Liberstad. (Right now, hardly anyone lives there.) Wages and various civic projects will also reportedly be funded with City Coins. The coin will reportedly operate on the proof-of-stake (PoS) algorithm which is more eco-friendly and less costly than the proof-of-work (PoW) algorithm. According to the press release, CITY is powered by City Chain, a blockchain-based smart city platform. It makes possible “the design, implementation, and use of next-generation services for smart cities and their inhabitants.” Unlike traditional cities relying on public services and government bodies, — the blockchain may enable the people of Liberstad to develop an ecosystem of private and public p2p services. All necessary interactions with the platform and the community will be supported via City Hub, a municipal app providing every resident with access to all Libertad’s facilities. It will also be used as a wallet to store City Coins, though its features are still under development for the time being. Meanwhile, the City Chain mainnet is already live, and City Coin is available for trading on the P2pb2b exchange and Liberstad’s own Block Exchange (LBX). The enthusiasts behind this smart city project believe that their ideas of freedom from government perfectly align with the concept of the decentralized blockchain.

Not the First, Not the Last

Without a doubt, Liberstad’s case is unique and outstanding. However, it is not the first time that a certain region opts to embrace blockchain, as other cryptocurrencies have been already introduced around the world. The most notorious example is, of course, Venezuela and its oil-backed Petro. Head over to Europe to visit the Austrian city of Vienna, which has announced its plans to launch the ‘Vienna Token,’ to be used within the city. Iran also decided to introduce a national state-backed cryptocurrency to dodge U.S. sanctions and build its own version of SWIFT. Even the United Arab Emirates are working hard to turn Dubai into the world’s first blockchain-based smart megalopolis by the end of 2020. The latest news came a few days ago from South Korea where the city of Gimpo also chose to launch its own cryptocurrency, K coin. It is scheduled to go live as soon as April 2019. Liberstad may be little more than a pipe dream, but it nevertheless serves as an example of how blockchain technology may empower individual freedom. Do you believe that native tokens launched by various regions will bolster personal independence and freedom in private cities? Let us know your thoughts in the comments below!