I’d very much appreciate your thoughts / advice / criticism regarding the notion of setting up a local cryptocurrency, which would be geared towards being a tokenised small business fund (rather than purporting to be a medium of exchange).
I think we’ve all witnessed the economic destruction that many small businesses have had to bear the brunt of — and now more than ever — I believe that communities have to come together, at a grassroots level, and rebuild vibrant local economies — and I think crypto might offer a to do that.
So, why crypto? I think creating a ‘city coin’, where locals could simultaneously do good and receive a token as a reward would be a fantastic way to attract capital and spur investment into a given city or town. As a non-profit, the project could raise capital, invest in real assets such as local premises, invest in businesses and perhaps own interests in those businesses — so that it is a.) backed by something tangible, b.) lowering the barrier for locals to invest in their community and c.) offering a new avenue for business funding.
(Of course, it wouldn’t be exclusive to local residents, it could provide a great platform for capital to be directed towards an underinvested city from either an institution or individual which wants something more esoteric.)
I would be inclined to approach the local council and to try and set up a research group at the local governmental level to develop the idea, but, given the nature of how governments think and work, I would not expect them to be that receptive to the idea, therefore being an independent non-profit may be the way to go.
If it didn’t scale up and we only managed to birth ONE business out of this idea, at least it would be one more than before!
I’d like your feedback on this as a concept, as well as thoughts regarding the logistics, obstacles, best practices, other examples to consider.
Am I mad? It sounds unrealistic, but, yet, surreal and unrealistic times require surreal and unrealistic solutions!