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As reported earlier in the week by local news outlet BusinessCloud, Wales’ government is set to follow in the footsteps of Italy and replicate the Sardinian model (dubbed Sardex) of local digital currency and system for businesses. While we are yet awaiting the next step in the UK government’s Brexit plans, it seems the Welsh government is already carving a life-saving tunnel out of the UK-EU economic mess that might ensue
Although aimed at scaling small and medium-sized enterprises (SME’s), creating a local digital currency, named Celyn, will go a long way to help them cut free from stringent rules and regulations surrounding the traditional financial world.
Like it did in Italy’s SME economy, the Celyn mutual credit system is expected to greatly expedite the growth of Wales’ economy over the next decades. Wales is targeting a total of £250 million over the next decade.
As a matter of fact, the Chief Executive Officer of Circular Economy Wales, Eifion Williams, was stated saying:
“the Sardex benefited the Sardinian SME economy to the tune of 50m euros last year alone. 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.”
The report shows that the Welsh government has awarded Circular Economy Wales a total of £100,000 for the digital currency project. This lump sum was collected from the government’s £4 million Foundational Economy Challenge Fund, showing just how much trust the government has on the project. A good way to go, I must say. To whom much is given, from him much is expected, as the quote goes.
Elaborating more on the project, Williams asserted that Wales has a lot in common with Sardinia. For starters, small and medium businesses reportedly make up 99% of all businesses in Wales. This is no different from the Sardinian business economy. As such, it is only right to expect a similar – if not the same – result, should the growth path follow the same trajectory.
Should everything goes as planned, boosting 99% of Wales businesses will ultimately lead to boosting the entire economy.
Lee Waters, the Deputy Minister of Economy explained further that “our Economic Action Plan sets out the direction for a broader and more balanced approach to economic development focused on making communities stronger and more resilient.”
As such, he believes this is a smart move and he is pumped to see the results of the mutual credit system and the digital currency.