Spanish Municipality Creates Its Own Cryptocurrency to Boost Economy Hurt by Coronavirus Crisis

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A municipality in the Spanish province of Seville has launched its own cryptocurrency to encourage residents and traders to arrange transactions with it amid the economic impact of the coronavirus.

The Spanish municipality of Seville introduces the cryptocurrency “Elio” to stimulate the local economy

According to Europa Press, Lebrija City Council created “Elio,” a euro-pegged crypto asset designed to serve as a tunnel for economic tools to stimulate local consumption between EUR 50 and EUR 200 (USD 61 to 244) one of the 593 selected beneficiaries. The selection criteria took into account the monthly income and the number of children.

In addition, 393 local companies will receive economic aid of EUR 400 (USD 488) in Elio before the end of the year under the “Municipal Reactive Plan”.

Pepe Barroso, the mayor of Lebrija, said that Elio’s creation would guarantee that economic aid would “invest directly in local businesses”. In fact, Barroso is referring to a mobile application that users should use to complete Elio transactions, available on the Google Play Store and the App Store.

The report also details the expectations for using Elio to increase local consumption:

With this help, families can buy products or services in stores in the city, exchange half of the purchase amount for a fee in this virtual currency and pay the other half conventionally. This is to “achieve a multiplier effect on the incentive provided by the city council”.

How much does an Elio cost?

To date, over 165 merchants are accepting Elio as a payment method, and if other companies want to join, Barroso can do so anytime, anytime. He also made it clear that one Elio is equal to one EUR.

Spain saw some action in its local crypto industry towards the end of the year. In October 2020, news.Bitcoin.com reported that the Spanish government had approved a bill requiring cryptocurrency holders to disclose their crypto holdings and any gains on their assets.

What do you think of this brand new Spanish cryptocurrency? Let us know in the comments below.

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