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Iceland national bank and government create a cryptocurrency to solve financial problems.
Auroracoin is an ‘national’ Iceland digital currency, which will be distribute to its citizens. The process called Airdrop will start today, on 25th of March. During it 50% of auroracoins will be issued in circulation to the country’s populace.
Icelandic residents can enter their ID on auroracoin’s official website of Auroracoin and receive 31.8 AUR, which equal $385. That money are coming from the remainder of the total premined 10.5M AUR set aside for Airdrop.
Baldur Friggjar Óðinsson, the developer of Auroracoin, told that there is a distrust of bankers and government in Iceland that was caused by the financial crisis, which started back in 2008.
But the government restrictions, which forced Icelanders to turn over foreign currency they earn to the Central Bank, had not improved the situation. What is more they couldn’t convert Iceland kronas into euros or dollars. This collapse became a cause to create an Icelandic cryptocurrency.
“The Icelandic government and banking system has engaged in frantic money printing in the past, resulting in devaluation of the krona. This has happened at the expense of the common man. They [the government] want to force people to use a ruined currency, the ISK, of which they have printed way too much and which will be heavily sold when people will be free to do so,” Óðinsson stated.
After completing the first stage, when all residents will receive their auroracoins, they could claim a some part of the leftover to premine. The recipients and other Icelanders of the coins will have a possibility to retrieve their gift during 4 months.
This stage will be followed by the stage number three, in which Icelanders could claim a part of the coins from stage 2 to premine for the second time. These digital money will become an irreversible gift with full transfer of ownership.
“One of the biggest problems that bitcoin faces is distribution,” said Travis Skweres, the CEO of altcoin exchange CoinMKT, in the interview with CoinDesk.
He continued: “If [auroracoin] is wildly successful, I think we will see this model emulated in the future, it could be a very very big deal.”
Auroracoin is challenged by a lack of awareness, however, argues Dan Held, co-founder of Zeroblock and a product manager at Blockchain.info.
“I think the concept of adding cryptocurrency as a meta layer on top of a pre-existing demographic is a cool idea, [but] I highly doubt more than 1% of the Icelandic population even knows about it,” said Mr. Held.