Barcelona launches own currency to boost local trade
Spain’s Barcelona has launched its own currency in a move which is meant to promote local trade by urban dwellers.
The Recurso Economico Ciudadano (REC) – which is translated as Citizens' Economic Resource – can be spent in 10 neighborhoods and could spread to more areas of Barcelona’s metropolitan zone in the future.
Residents would be able to spend the REC in local businesses in the city, with payments going straight to the retailer's mobile phone, according to media reports.
The exchange rate for the REC equals that of the euro, but during the initial stages of its introduction, shop owners are the only ones allowed to exchange the city currency into Euros, according to a report by Sputnik news agency.
REC comes as part of the European “B-Mincome” social initiative and the Urban Innovative Actions (UIA) program, which is behind the idea of a minimum level of income being guaranteed to all residents and which the EU wants to see in place in all of its member-states, Sputnik added.
It further quoted Argentine economist Juan Valerdi as saying that the REC would expedite the pace of financial involvement.
“What you get is fast-track financial involvement where you don’t have go to a bank and become a client. You get access to financial services which are provided right to your mobile phone at prices which are way lower than what you normally get at conventional banks,” Valerdi explained.
Even better, he added, more people are able to use digital instruments of exchange. Moreover, the money doesn’t go anywhere, as it is spent inside the community and reinvested into this very community.
He added that even though these financial instruments were developed mainly in Europe, poorer countries could benefit even more from their introduction.
“For example, this is happening in Africa where there is a direct switch to blockchain bypassing the traditional financial institutions,” Valerdi said.
“People can make payments with this currency right from their cellphones, which is rather paradoxical because these are poor countries but everyone has a mobile phone,” he added.
The pilot project, just launched in Barcelona, will run until October 2019 and may continue thereafter if it is a success.
Pakistan says Iran's gas project ‘need of the hour’, pushes for US sanctions waiver
Israeli economy plunges almost 20% as Gaza war takes heavy toll
IMF to urge China to shift growth model towards consumption
VIDEO | Leader meets workers on Labor Week
French police called in to break up US-style pro-Palestinian student demo
VIDEO | US continues starving Syrians, stealing their resources
Yemeni forces strike Israeli ship, Port of Eilat in solidarity with Gaza
Columbia, Yale students bent on ending US support for Israeli genocide
VIDEO | Genocide in Gaza
Iran calls on BRICS to play role in stopping Israeli crimes
President Raeisi’s historic visit opens new chapter in Iran-Pakistan ties
This makes it easy to access the Press TV website
