Russian Town Adopts Its Own Cryptocurrency to Replace Ruble

Farms and businesses in the town of Kolionovo are adopting a new crypto-token, the Kolion, in loo of the ruble to transact.

Kolion: A Response to a Shaky Economy

Mikhail Shlyapnikov is a banker turned farmer that ran into issues when he tried to take out a loan out for his farm. Banks were charging absurd 12% interest rates for small business loans.

Instead, he opted to create his own currency that was to be used within his local community. He printed paper kolions until they were banned by a Russian court in 2015, later raising around $500,000 in April 2017 to create a crypto-kolion (KLN) via ICO. The emission of tokens was carried out on the WAVES blockchain platform, according to the Kolion whitepaper.

Kolionovo is a village located in the rural settlement Yurtsovskoe of the Egoryevsky district, in the Moscow region  of Russia.

“I didn’t want to suffocate and be a slave of the banks. So I had to invent my own money. And I did it. I’m my own bank, government, regulator, ” Shlyapnikov told CNN.

The token is backed by a stockpile of roughly 500 BTC worth around $3.7 million at market price. Shlyapnikov says theres around $2 million in kolions in circulation and the coin’s price has increased since the ICO.

Bitcoin and many other crypto-currencies can be earned via mining with a computer, but that’s not the case with Kolion. The tokens can be purchased via exchanges using other popular crypto-currencies or earned by helping residents of Kolionovo with construction or farming work, a process known as “Plowing.” […]

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