ForexMinute – After joining the Wall of Fame for being the third largest cryptocurrency recently, Auroracoin also managed to follow a well-renowned legacy of virtual currencies; it scared the government.
The Litecoin-inspired digital currency is now more of a revolution in Iceland. Its creator Baldur Friggjar Óðinsson, a Robin Hood in his own way, announced last month that he will going airdrop Auroracoin to an over 333,000 citizens on March 25th this year, owing to a frustration he had with the Iceland’s crippled economy. The local entrepreneur thinks that its country can regain the control of the finance system, which has been lost somehow due to a poor governance.
“The people of Iceland are being sacrificed at the altar of a flawed financial system, controlled by an elite that made astronomical bets supported by the government on behalf of the people and ultimately at the expense of the people,” Baldur wrote. “The power must be taken away from the politicians and given back to the people.”
He also laid out reasons for creating an altogether different currency rather than giving everyone a Bitcoin or Litecoin. “Giving people Auroracoin is a way of introducing the nation to cryptocurrencies, currencies that can’t be controlled by politicians and central bankers,” Baldur told the media. “This is an attempt to bootstrap a network effect. The government will not be able to control how people use their money if the people choose to use Auroracoin rather than the króna.”
Sharp Reaction from the Iceland’s Government
The Icelandic government’s response to this whole episode is gradually coming to light, where the MPs are calling Auroracoin a ‘monetary scam’.
One among them is Mr. Peter Blöndal, who have laid out his views on Auroracoin on March 14th during a parliamentary debate. He emphasized on the alleged tax evasions this currency can bring inside the Iceland’s already-weak economy. He referred Bitcoin as one of the examples, a currency which, as per him, failed to protect the right of individuals at first place, let alone government.
“People have to realize that this is not a recognized currency since no-one backs the medium,” says Peter, but after more than 10 days, aurora coin leaders said they intend to vote all Icelanders some elements of the media.
Frosti Sigurjónsson, Chairman of the Committee for Economic Affairs and Trade, also believes Auroracoin to be rather a threat than a solution. The ruling Progressive Party member has asked Central Bank and Financial Supervisory Authority to take strict action against the currency, as per speculated by Óðinsson.
“They can make it illegal to own or trade Auroracoin,” said Óðinsson. ”However, they will never be able to control such a decentralized system, or stop Icelanders from using the currency, without turning Iceland into a police state.”
The future of Auroracoin is now laying in the midst of dozen speculations. The currency undoubtedly has garnered enough attention with its sky-rocketing performance since the launch. But to make sure that it remains valuable, Bolder will have to concentrate heavily on its mining and circulation.
It is still unsure to say how Auroracoin can help save a failing economy, but if it does than it can write a whole new chapter in the history of digital currencies.
To contact the reporter of the story: Yashu Gola at email@example.com