Hull City Council has partnered with a cryptocurrency developer to form a bitcoin offshoot that will only be used in the city.
The virtual currency, which is called HullCoin, will be used as a reward for those who participate in voluntary work and given by food banks with aid. It is targeted to help create a local economy, just like Brixton Pound has done in south London, reported the Guardian.
The proposal is being reviewed by the Hull Financial Inclusion Forum that is composed of organizations such as charities, credit unions and the council. A Facebook page and Twitter account have been opened to help promote the idea.
If Hull City finally launches the HullCoin, it will become the first U.K. local authority to have its own virtual currency.
Andy Brown, the head of customer services, told Hull City News: “This is brand new technology and it is unproven. It is one of a number of projects we are looking at to help low income people. Yes, it sounds good on paper, so our job now is to do some more detective work to see if it will work here.”
Though the concept is similar to Bitcoin, it is however said to be closely linked to two virtual currencies called Ven and Feathercoin.
Presently, a powerful computer hardware that was bought by a third party is undergoing tests to generate or “mine” HullCoin. The currency’s users will spend it by sending the cash from electronic devices, including phones, to companies that recognize it.
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