Spanish Municipality Creates Its Own Cryptocurrency to Boost Economy Hurt by Coronavirus Crisis

A municipality in the province of Sevilla, Spain, has launched its own cryptocurrency, which aims to encourage residents and merchants to arrange transactions with it in the midst of the coronavirus-driven economic impact.

Spain’s Sevilla Municipality Launches ‘Elio’ Cryptocurrency to Boost Local Economy

According to Europa Press, the City Council of Lebrija created “Elio,” a crypto asset pegged to euro price, which will act as a tunnel to send economic aids to stimulate local consumption, between 50 and 200 EUR ($61 to 244) to each one of the 593 selected beneficiaries. The criteria of selection took into consideration their monthly income and number of children.

Also, 393 local companies will receive a 400 EUR ($488) economic aid worth in Elio before the end of the year, as part of the “Municipal Reactive Plan.”

Pepe Barroso, the mayor of Lebrija, said that Elio’s creation would guarantee that economic aids “invest directly in local businesses.” In fact, Barroso refers to a mobile application that people should use to handle Elio transactions, available in the Google Play Store and App Store.

The report also explains further about the expectations of using Elio for boosting local consumption:

With this help, families will be able to purchase products or services in shops in the city, being able to exchange half of the purchase amount with a charge to this balance through a virtual currency, and conventionally paying the other half. This is intended to ‘achieve a multiplier effect on the incentive provided by the City Council.’

How Much Is an Elio?

So far, over 165 merchants accept Elio as a payment method, and if other companies would like to join, Barroso said they can still do it and at any time. He also clarified that one Elio equals one EUR.

Spain has been witnessing some year-end action in their local crypto industry. In October 2020, news.Bitcoin.com reported that Spain’s government approved a bill that requires cryptocurrency owners to disclose their crypto holdings and any gains on their assets.

What do you think about this brand-new Spanish cryptocurrency? Let us know in the comments section below.

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via Felipe Erazo