The English city is following in the footsteps of fiscally forward-looking cities worldwide by establishing its own digital payment system

Liverpool has become the newest of several international cities to establish its own digital currency. The hyperlocal currency was launched by Tel-Aviv-based company Colu and mark's the third localized currency venture for the company after establishing two digital currencies in its native of Israel.


While these seem like futuristic monetary steps made, localized currency as a whole, isn't a new concept. Other towns and cities around the world have already flirted with their own mediums of currency including: the English regions of Bristol and Brixton; Volos, Greece; Ithaca, New York; Espinal, Mexico; Detroit Michigan and Philadelphia, Pennsylvania.

Liverpool's newly unveiled currency, dubbed the the Liverpool Local Pound (LLP) just launched on January 1, 2017 and already has more than 3,000 users. According to Amos Meiri, CEO of Colu, there is a transaction using the currency every five to 10 minutes.

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According to research conducted by LM3, a company which powers an online tool for measuring the effectiveness of local spending, and information gathered by The Guild of Independent Currencies, an umbrella movement which links many of the worldwide independent currency schemes, the benefits of localized currency are quite apparent.

Reports suggest money spent with independent businesses circulates in the local economy up to three times longer than when it’s spent with national chains.

In the case of Liverpool, local jobs and taxes created by nearby shopping means £1 spent locally can benefit the neighborhood’s economy to the tune of £1.76. Of every £1 spent locally, only 36p will leave the area, making local spending with regional currency worth four times more to a neighborhood than cash transacted at a multinational level.

Anyone with a smart phone can use the LLP by downloading the Colu app. First time users are credited with five free LLPs and can add to their digital wallets using a credit or debit card.

Colu currently charges merchants £25 per month to subscribe to the service and plans to levy a 5 percent fee on users when they take money out of circulation.

In March of 2017, Colu is anticipated to launch another digital currency in East London. Like the LLP, this new currency could help further the possibilities of cash exchange, creating a new way of viewing money that encourages sustainable and equitable economic growth while supporting local businesses.

Colu

Liverpool has become the newest of several international cities to establish its own digital currency. The hyperlocal currency was launched by Tel-Aviv-based company Colu and mark's the third localized currency venture for the company after establishing two digital currencies in its native of Israel.

While these seem like futuristic monetary steps made, localized currency as a whole, isn't a new concept. Other towns and cities around the world have already flirted with their own mediums of currency including: the English regions of Bristol and Brixton; Volos, Greece; Ithaca, New York; Espinal, Mexico; Detroit Michigan and Philadelphia, Pennsylvania.