What’s State of Cryptocurrency Use in Nordics?

UTC by Natallia Maksimenko · 3 min read
What’s State of Cryptocurrency Use in Nordics?
Photo: Marco Verch / Flickr

The Nordics is a region that is trying to form a crypto-friendly society, therefore crypto and blockchain are being used there in a great variety of spheres. The government is not an exception.

The Nordics is a geographical region that consists of Norway, Sweden, Finland, Denmark, and Iceland.

Besides being known as some of the best places to live in, these countries are also becoming heavily involved in the area of blockchain and cryptocurrencies.

Mining Crypto in the Nordics is More Affordable

For starters, many crypto miners recently moved their operations to Sweden and Norway to take advantage of affordable hydro-electric energy and consistently low temperatures to keep their servers running smoothly for as low as 6.5 euro cents per kilowatt-hour. But the Nordics’ involvement in crypto doesn’t stop there, and there are many crypto startups springing up in the region.

Relevant Crypto Startups in the Nordics

One of the most prominent is called Chromaway; this startup aims to create a fresh infrastructure for decentralized applications. It has recently raised $15 million through an ICO and is bound to become a serious player in the market. Then, you have companies like the Danish Coinify that helps online stores accept crypto as a form of payment and serves as a transaction engine for over 30,000 companies.

These are some relevant examples, but there are many more and besides, as you’ll find out below, crypto is even used on a government level in the Nordics.

How are Crypto Currencies Used in the Nordics?

One of the most interesting developments in the world of cryptocurrency took place in Norway. A smart city called Liberstad (Free City) adopted cryptocurrency as the sole medium of value exchange within its borders. The main idea here was to create a mini-state ruled without government authorities that remains free from surveillance, taxes, and other concepts normally associated with living in modern society. Instead, all needs of the citizenry are met by the private sector consisting of volunteers and entrepreneurs.

First plots of land were sold for Bitcoin or Norwegian krone in 2017, and since then, over 100 residents have become involved in the project. Next, Liberstad created its own cryptocurrency called “City Coin” which now serves as the only means of payment there, as fiat currencies are prohibited.

This blockchain-enabled bid for freedom from government is also reflected in the world of online casinos and oddsmakers in the Nordics. A few online sports betting providers already experiment with cryptocurrencies to make their services more accessible, but established bookies like Unibet stay away from it due to high price volatility. However, this may soon change when the value of crypto becomes more stable, and major businesses in the region start accepting it as a form of payment.

The dream of a crypto-friendly society is exemplified on an even grander scale in Sweden. Here, Riksbank, the central bank of Sweden, is working on the development of e-krona, an online currency that will allow the country to go completely cashless as soon as 2021. The project will use distributed ledger technology, but the currency will be owned by the government, making it very similar to FIAT money.

This is actually not such as a bad idea, because leaving payment systems to the private sector could leave many citizens without a viable payment option in a society which will probably stop accepting cash altogether by 2023. The pilot e-krona project will run until February 2021, and then we’ll have more information about its future viability.

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Natallia Maksimenko

Having deep expertise in intercultural communications, Natallia is fond of foreign languages and cultures. She strongly believes that people should continually develop to stay on track, that's why she permanently widens her knowledge in various spheres. Currently, Natallia is fully immersed in crypto, blockchain and financial techs.

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