The Spanish municipality of Librija has introduced a virtual currency called Elio. However, according to the report Diario de Sevilla, it will not be used for large payments, but only for small and medium-sized enterprises.
Elio is linked to the European currency, which means that one Elio is equivalent to one euro. When the digital coin is first put into circulation, 600 families will receive between € 20 and € 200, and the funds can be spent at local businesses via the app.
Although the initial token redemption date was set at December 31, some technical delays caused it to be extended until March 31, 2021.
Elio will strengthen the local economy
The deadline for using Elio expired on December 31, but according to the report, it was extended to March 31, 2021. According to an announcement, the main purpose of cryptocurrency is to facilitate local transactions during the COVID-19 period.
The city also announced it would send € 400 economic aid to 393 local businesses. They will receive the equivalent of the funds via the Elio virtual currency.
David Perez, head of the City Council’s Technology Department commented on the project. Perez explained that the cryptocurrency is tied to the euro and that users who wish to enjoy its benefits will need to download the app. So far, about 165 stores and companies have already registered for the project.
According to the city’s mayor, using Elio means that stimulus funds will be invested directly in local businesses. This, in turn, will improve the commune’s economy. According to the report, families can buy goods or pay for services in the city and pay half the amount in virtual currency and the other half through traditional means.
The introduction of the local digital currency comes at a time when governments began to seriously examine the digital central bank (CBDC). The introduction of the local digital currency comes at a time when governments began to seriously examine the digital central bank (CBDC). As we reported some time ago, Russian officials even believe that CBDC in the future may even become a competitor to the domination of the international SWIFT payment system.