In the U.S., “What is Bitcoin” remains number 1 question people are searching on the internet, according to Google’s 2018 review of search terms.
In the U.K., the Bank of England studied whether digital currencies could undermine its financial stability. Its research found that while digital currencies do not possess such risk to the economy, potential investors should be ready to lose all their money. In the end, the Bank of England said it will continue being vigilant about the growing financial trend.
China, dubbed as the world’s second-largest economy next to the U.S., has a tougher stance against digital currencies. In August, its government started a crackdown on more than 120 foreign cryptocurrencies and ban them altogether from being traded in the country.
While these big countries dwell with their distrust, Calgary chose to take a different path.
On Dec. 7, Calgary became the first city in the country to launch a digital version of the local currency, the Calgary Dollars.
About Calgary Dollars
So, how does a small city find the courage to use a technology generally doubted by its biggest counterparts? For one, Calgary builds on trust. The ultimate aim behind launching Calgary Dollars was to foster good relations between local consumers and small businesses.
During its official launch, it was Alberta Finance Minister Joe Ceci who made the first purchase using the digital currency. He bought rounds of coffee from a local shop.
Unlike Bitcoin or Ethereum, Calgary Dollars was not designed to be bought or to be cashed-out. It will only be used to purchase products from small businesses. The digital currency will also be used to donate to non-profit organizations within the city.
By building on such noble causes, more than 350 residents and stores have naturally embraced the digital currency.
Officials were also apt to remind people about the proper use of the digital currency. It should be used alongside the country’s money and should not be used as a replacement, Gerald Wheatley, manager of Calgary Dollars, explained to HuffPost Canada.
This was also the warning from Alfred Lehar, a finance professor at the University of Calgary.
“Local currencies are not something you want to use exclusively or put your life savings into…they shouldn’t replace federal currency, or people could find themselves with no real money,” he said.
To collect Calgary Dollars for their purchases, residents can answer surveys or refer others to participate. They can also post ads for goods and services on the Calgary Dollars website. One ad converts to $5 Calgary Dollars.
Residents can manage their Calgary Dollars or pay using the currency through a dedicated smartphone app. The platform also lists participating businesses and cafes. Stores, on the other hand, can limit whether they will accept the digital currency for the whole cost of the purchases or for only certain percentages. They can set charges between 10 and 100 percent of the amount.
Calgary’s step to embrace digital currency could be touted as breaking new grounds in the financial and the technology sector. At the very core of the decision, however, is the love for the local community. With Calgary Dollars, the money stays inside the local economy and people patronize their neighbors’ products.