Digital currencies can make for fast and hassle-free transactions in mainstream retail, but does this medium have the power to replace a government’s financial institutions? Developed by Baldur Friggjar Odinsson, Auroracoin is a litecoin-based cyptocurrency that could offer a solution to Iceland’s financial instability.
These pre-mined coins will be “airdropped” to the entire population of Iceland on March 25. The aim of this one-time event is to notify people of its presence and possibilities. According to Odinsson, each one of the country’s 330,000 citizens will have claims to 31.8 Auroracoins. To secure said coins, citizens will use their national ID to verify their identity.
Since the country’s major financial meltdown in 2008, Iceland’s crippled economy has faced irreparable inflation and a skyrocketing national debt. The “unholy alliance” between governments and too-big-to-fail banks locks people into the flawed financial system, which is ineffectively controlled by an elite group of leaders.
Creators of Auroracoin believe that the virtual currency could decentralize the power of the political elites, restoring agency back to the people. No longer would the country’s economy need to depend on fiat currencies, since they would now have the opportunity to “mine” for their own.
Whether or not people will accept Auroracoin is still up in the air, but it is certain that the value for these coins will be determined by its demand even before the Airdrop – the higher the price, the higher chance of its adoption by the Icelandic population.