Authorities in Wales plans to launch a digital currency that would form the basis for a mutual credit system that will be adopted by businesses in the country.
According to a report by Business Cloud, the jurisdiction has reportedly set aside the sum of £100,000 from its £4-million Foundational Economy Challenge Fund for the project dubbed Celyn. Circular Economy Wales, a government-backed initiative, will handle the project in a bid to boost the country’s Small and Medium Enterprises (SMEs) economy.
As per the report, Celyn will act as a medium of payment for the exchange of surplus goods and services, thus eliminating the use of pound sterling or other currencies in purchases.
The rationale behind the Celyn project will be Sardex, a non-blockchain based business-to-business (B2B) electronic credit system located in Sardinia, Italy, which, since its inception, has spread across various parts of Italy.
One of the founders of the Sardex project, Dr. Paolo Dini, a research fellow at the London School of Economics, has been included in the team to head the Celyn project, which looks all but set to undergo a trial.
Eifion Williams, CEO of Circular Economy Wales, stated that since the Sardex project was established in 2008 by a group of Sardinian locals, the project has helped boost the Sardinian SME economy, with the project raking in £50 million profit last year.
He stated that Wales and Sardinia are similar because SMEs constitute about 99 percent of their business while speculating that if the Sardex project were replicated in Wales the same time the project was launched, the Welsh economy would have gotten a boost of over £250 million.
Williams reportedly said,
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
Also commenting on the development, Wales Deputy Mister for Economy and Transport Lee Waters, reiterated that both Wales and Sardinia have the same economic factors, which is a sign that if the Sardex project is replicated in Wales, it will bring a positive result for the country’s economy.
“The Sardex has been replicated successfully in many parts of Italy, so it’s fascinating to be able to pilot this in Wales. This will be the first replication outside of Italy,” he added.
While it is no longer news that various countries are seeking to adopt digital currencies for one purpose or the other, Coinfomania reported last month that China’s anticipated digital currency does not have a specific launch date contrary to rumors making the rounds.