Liberstad, a private city in Norway, is banning cash and launching its own cryptocurrency, the City Coin (CITY).

One of the biggest hurdles for cryptocurrency gaining mainstream adoption is the ability to use it for everyday needs, such as buying lunch or getting gas. However, this is no longer a concern for residents of a private city in Norway, which has taken the step of launching its own cryptocurrency while simultaneously banning the use of cash.

Private Anarchist Living in Norway

Liberstad is a private city in the south of Norway that is part of The Libertania Project. This movement seeks to create private cities based upon “anarchism and the non-aggression principle.” Essentially, Liberstad seeks to increase political freedom and autonomy for the individual. As such, it is against “big government,” which makes it a good ideological fit for cryptocurrency.

A spokesman for Liberstad says:

We are a small group of individuals who are seeking a change in the way society works. We want a society where people decide over themselves and can live together without government authorities. Liberstad will become a city where anarchism can get a physical foothold in one of the world’s most socialist countries. We also want a city where everyone has the opportunity to buy both houses and land for a price that is far below other house and cottage prices in Norway. In Liberstad you will be able to live without high mortgage or rent, and without any direct and indirect taxes. Liberstad will become a city where life is easier, more relaxing and without the high cost of living. In the long term, we can together develop a private city where people have greater freedom and opportunity to live the life they desire.

Critics note that such an attitude reflects those that are willing to enjoy the benefits offered by a powerful central government but don’t wish to pay for them. However, the lack of taxation is surely just on the local level as it is highly unlikely the government of Norway would turn a blind eye to a city of non-taxpayers.

Going All-In for Crypto

One of the ways that Liberstad plans on forging greater individual freedom is through the use of cryptocurrency. The city is banning the use of cash for all transactions within the city. Instead, citizens will use the city’s own cryptocurrency, the City Coin (CITY).

A spokesman offered the following details on this development, stating:

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.

He added:

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.

It’ll be interesting to see how this entire venture pans out. Liberstad was founded in June 2017 and plans to be Norway’s first private city.

While some may view the banning of cash in lieu of a cryptocurrency as something radically new, a variation of this has been done before. At the height of the Industrial Revolution, major corporations created company towns. These towns were based upon a specific industry, such as mining or textiles.

The company would run every aspect of the town, such as the stores, housing, law enforcement, and schools. Wages were paid in company scrip, which would be used to pay rent, buy goods, and purchase services. This situation allowed the company to basically trap their employees into a place they could not leave due to the dearth of state-issued legal tender and making them wholly dependent upon the company.

Of course, Liberstad is a different beast as it is a voluntary project, and an exchange would mean that City Coin could be converted into fiat. You can buy plots in the city, when they become available again, with Bitcoin and Bitcoin Cash.

Do you think Liberstad will be successful? Let us know in the comments below.

Images courtesy of Liberstad and Pixabay.