Liberstad is a project which aims to establish Norway's first private city

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Now it has announced it will dump recognised legal money and instead adopt City Coin as its official currency. A form of digital cash, cryptocurrency uses encryption to secure transactions and control the creation of new units. It uses cryptography, a form of secret coding originating from the Second World War, to process transactions securely. Its major appeal is it is independence from established financial systems. A spokesman said: “City Coin is a secure and innovative cryptocurrency based on City Chain, a smart city platform that enables the design, implementation and use of next-generation services for smart cities and their inhabitants.

“As the first cryptocurrency to be officially adopted by a smart city, City Coin is the only medium of exchange within Liberstad. “It will be used for the payment of city services and worker wages and for funding civic projects. “Inhabitants can pay for anything ranging from haircuts, a dozen local eggs or an artisan loaf of bread using CITY, marking a milestone for real-world use of blockchain technology. “Over 100 land plots have already been sold within Liberstad and more will become available to purchase using CITY in the near future.”

Liberstad will be a city built on the philosophy that all human interactions should be voluntary

Liberstad was founded on the principle of libertarianism – a collection of political philosophies and movements that uphold liberty as a core principle. Libertarians dislike 'big government' and aim to increase political freedom and autonomy, freedom of choice, voluntary association, and individual judgment. Critics deride followers as dreamers who want the benefits of modern society without having to pay for them. Liberstad is part of The Libertania Project which aims to establish private cities that are based on “anarchism and the non-aggression principle”. The spokesman added: “We are a small group of individuals who are seeking a change in the way society works.