Russian City Adopts Its Personal Cryptocurrency to Exchange Ruble – Bitcoinist.com

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Russian Town Adopts Its Own Cryptocurrency to Replace Ruble - Bitcoinist.com

Farms and companies within the city of Kolionovo are adopting a brand new crypto-token, the Kolion, in bathroom of the ruble to transact.


Kolion: A Response to a Shaky Economic system

Mikhail Shlyapnikov is a banker turned farmer that bumped into points when he tried to take out a mortgage out for his farm. Banks have been charging absurd 12% rates of interest for small enterprise loans.

As an alternative, he opted to create his personal foreign money that was for use inside his area people. He printed paper kolions till they have been banned by a Russian courtroom in 2015, later elevating round $500,000 in April 2017 to create a crypto-kolion (KLN) through ICO. The emission of tokens was carried out on the WAVES blockchain platform, in keeping with the Kolion whitepaper.

Kolionovo is a village situated within the rural settlement Yurtsovskoe of the Egoryevsky district, within the Moscow area  of Russia.

“I didn’t need to suffocate and be a slave of the banks. So I needed to invent my very own cash. And I did it. I’m my very own financial institution, authorities, regulator, ” Shlyapnikov informed CNN.

The token is backed by a stockpile of roughly 500 BTC value round $three.7 million at market value. Shlyapnikov says theres round $2 million in kolions in circulation and the coin’s value has elevated because the ICO.

Bitcoin and plenty of different crypto-currencies might be earned through mining with a pc, however that’s not the case with Kolion. The tokens might be bought through exchanges utilizing different well-liked crypto-currencies or earned by serving to residents of Kolionovo with development or farming work, a course of generally known as “Plowing.”

Shlyapnikov  has satisfied round 100 native farmers and suppliers in close to by cities and villages to make use of the Kolion, making paper rubles a uncommon website.

Meanwhie, the ruble has been struggling in gentle of financial sanctions in opposition to Russia. It’s misplaced half it’s worth since 2014, and Russian crypto-enthusiasts are hoping decentralized cryptocurrencies will assist cut back their publicity to the bigger nationwide monetary system.