ETHERLive
ETHERLive delivers real-time price and volume data across 16+ exchanges to users in a clear and easy-to-understand package. Users can get up-to-the-second updates for each exchange/currency pair, as well as aggregated market averages for each exchange, currency, and the market as a whole. It also provides a global converted average of all the currency pairs monitored by ETHNews, converted to USD.

---

24hr ---
--%
Thursday Jun 21st 2018
RESOURCES

The Basics

Learn the basics of Ethereum and various cryptocurrency technologies

Learn More

What is Ethereum?

Understand the underlying principles of the Ethereum Platform

Learn More

The Blockchain

Discover the revolutionizing technology known as the blockchain

Learn More
SUBMIT

Press Release

Submit a press release for consideration on ETHNews

Submit Press

Story / Dapp

Submit a story or DAPP to be considered for publication on ETHNews.

Submit Story

Explanation

Submit "Ethereum Explainer" content for consideration to be featured on ETHNews

Submit Topic
ETHNews Logo
---
--%
Home
News
Etherlive
Ether Price Analysis
Resources
Contact Us

New York Considers Law That Would Create Local Cryptocurrencies

By

Tim

Prentiss

WriterETHNews.com

A new bill in New York would create a pilot program enabling up to ten of the state’s communities to create their own cryptocurrencies. The program is an effort to keep money from leaving local economies.

While cryptocurrency is widely seen as transnational, a recent bill submitted in a New York statehouse proposes what some may view as a counter-intuitive use of the technology. In the bill, the development of cryptocurrencies intersects with another ongoing trend – the creation of local currencies – to potentially establish currencies that are extremely geographically restricted.

If passed, Assembly Bill 11018 will create a pilot program allowing up to ten New York municipalities to create their own cryptocurrencies. These currencies would have to be approved by the Department of Financial Services, and "shall be issued and registered at the municipal level for use at local participating businesses for goods and services," according to the language of the bill.

In part, the bill is an attempt to keep money from leaving local communities. The "Justification" section of the bill states that the pilot program is intended to address the "draining of revenue from local communities as neighborhood-based small businesses shut down in increasing numbers while large corporate chain stores and franchises continue to grow."

The section goes on to describe how the digital currencies will be used, and how they will benefit communities:

"Instead of going to a chain store pharmacy, where the money spent is then reallocated outside of the neighborhood, spending community currency at a mom and pop pharmacy will reinvest that currency back into the local economy."

New York's move is part of an ongoing trend. Local currencies, whether crypto or not, have been introduced in cities all over the world. But these currencies vary widely in both form and purpose. 

Typically, these are "complementary" currencies, meaning they are not intended to replace the national fiat. Some more closely resemble a discount program than actual money, while others are intended to fund municipal projects or help ease poverty. 

The intent for what New York is proposing is much like the Brixton Pound – a physical local currency famous for featuring David Bowie on the ten-pound note – or Ithacash, one of the local digital currencies cited as a success by the bill. Like the proposed New York currencies, these are primarily intended to keep money in local economies.

Source

Other schemes can be more complicated. Berkeley, California, for instance, issued an ICO intended to provide services for the homeless. The English city Hull released a digital currency that can only be earned by doing "good works," such as volunteering or even quitting smoking. 

Tim Prentiss

Tim Prentiss is a writer and editor for ETHNews. He has a master’s degree in journalism from the University of Nevada, Reno. He lives in Reno with his daughter. In his spare time he writes songs and disassembles perfectly good electronic devices.

ETHNews is committed to its Editorial Policy

Like what you read? Follow us on Twitter @ETHNews_ to receive the latest New York, bill or other Ethereum cryptocurrencies and tokens news.