Glasgow digital currency: hope or reality?

Glasgow digital currency: hope or reality?

Soon many cities around the world will issue their own digital currency.

According to Pavel Bains, in fact, within the next 10 years we’ll see the first city that have its own digital money and that is separates from the national fiat currency.

The Blockchain Role

This could be the right time for cities to exploit the blockchain and adop their own currency.

But for a new digital currency to be adopted quickly it needs the following characteristics, according to Bains (and we tent to agree with him):

1. Cheap: fiat currencies are very expensive to produce, manage and distribute. Conversely, a digital currency deletes all those costs and can easily be distributed;
2. Secure: as it is digital, cryptographic and based on pure algorithms, the chance of forgery or distrust is removed;
3. Safe: a digital currency can be backed by other assets like gold, treasury bills, foreign exchange or equities, just like fiat money;
4. Usable: cities such as Stockholm are going purely digital, so a digital city currency could be massively adopted quickly.

The newest Glasgow digital currency

Bains is pretty sure that the first city to adopt a digital currency will be Glasgow.

This because the Scottish city failed to benefit from the England pound and it came close to a recession back in 2015.

Also, Brexit opened a real issue for Scotland’s future with the potential loss of trades. Demand for Scotland’s products is already declining: in that year there was an 11% drop in exports compared to 2.7% for the UK and with Brexit the situation can only get worse.

But Glasgow has the right tools to adopt its own digital currency. These the major reasons according to Bains:

1. It has the regional size and population: this could make the difference compared to smaller cities such as Dundee;
2. It has a high record of academia, government and business working together. This unity could be great to manage a new-born digital currency
3. Glasgow has a thriving financial base, moving to 74th in the world for financial centers and this demonstrates the city has a good base and an educated population to operationalize the new digital currency system.

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