Tezos (XTZ) had previously supported local democracy. It is now helping the local economy of a town in Switzerland.
As Europe reorganizes itself, blockchain may save small and medium-sized businesses in the town of Wetzikon from bankruptcy.
Tezos helps Swiss SMEs
On October 30, 2020, the city of Wetzikon in Swiss launched a blockchain-based aid program for small and medium-sized businesses affected by the covid-19 pandemic.
The first installment is estimated at CHF 250,000, or around USD 280,000, and will be financed by a municipal credit line intended for the coronavirus.
The assistance will be paid in the form of an e-coupon worth CHF 10. Residents should use the ecoo mobile application to be able to benefit from it. Ecoo is using this aid program as a pilot project for its future platform.
Ecoo has been designed to assist public or private entities when distributing special funds in the form of tokens or points.
The application was built on the blockchain Tezos and is the result of collaboration between Swiss companies Papers AG and Farner Consulting AG.
Cryptos to heal the global economy
Residents of Wetzikon can convert their coupons into tokens WetziKoins usable with local businesses.
The latter can then convert these tokens into Swiss francs with the administration.
The mayor of Wetzikon, Ruedi Rufenacht, indicated that under the current circumstances, initiatives in favor of the local economy should be carried out in a sustainable manner.
The Swiss is not the only country to have explored the use of blockchain technology in response to covid-19.
After stating that there were no convincing arguments in favor of the introduction of central bank cryptos, the vice-governor of the Central Bank of Canada, Timothy lane, asserted that digital currencies were a solution to the economic realities of covid-19.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
WetziKoins tokens provide an interesting contrast to the use of cryptocurrencies. On the one hand, Bitcoin (BTC), Libra (≋) and Tether (USDT) know no borders. They now make available to inhabitants of different countries alternative means of payment to fiats. On the other hand, WetziKoins tokens make it possible to create a local digital currency – can only be used with Wetzikon SMEs – for a city wishing to help its SMEs. Blockchain has the potential to erase monetary boundaries as well as to draw new ones.
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