The Italian town Castellino del Biferno has started minting its currency to support the local economy in the wake of the global pandemic. Italy is among the hardest-hit countries by the coronavirus pandemic. The mayor of Castellino del Biferno Enrico Fratangelo had been studying minting money for 12 years before having the chance to put his ideas to the test.
The town is minting currency to help the local economy.
The town mayor Enrico Fratangelo said that they are minting money to make sure the local economy could withstand the impact of the situation. However small this economy may be, there are three or four businesses still open, without considering bars or pubs, he added. The local currency dubbed as Ducati is being distributed to residents based on their economic needs, which can be spent on essential goods. So there is no confusion, the value of 1 Ducati is equal to 1 euro. The town council received €5,500 from the government to issue food stamps, and with the addition of their own saving, the town was able to fund the solution.
Central banks continue to research CBDCs.
The use of digital means of payment amid the coronavirus pandemic has increased quite exponentially as people fear the spread of the virus through physical currency. Central banks all over the world are studying and researching digital currency and the way they can issue their own. China has been working from the last five to six years on its digital version of Yuan dubbed as DC/EP. Currently, the national digital currency is being tested in four cities and franchises like McDonald’s and Starbucks being involved in the trial.
The idea of a local currency was tried before in Italy in 2016. Gioiosa, also in Italy’s south, is home to a group of asylum seekers and uses a local currency that is only accepted in local stores. The concept of heavily localized currency dubbed as ‘”tickets,” was to ensure that local businesses benefit, defusing any potential tension with the new arrivals.
