The existing coins, however, can be divided into certain categories: some of them, like Bitcoin, Litecoin or Dash, are global cryptocurrencies that compete mostly on a technological basis. Others, like ADX, are native tokens whose primary field of application is in their respective infrastructure. There are scam coins, forgotten coins, and coins made as a joke. Finally, there is a relatively scarce category, which is regional (or local) cryptocurrencies.
While this area is obviously underdeveloped in the industry, it may be the one that holds the key to wider acceptance of cryptocurrencies across numerous massive communities. Some of them are dedicated to a particular area or community while others appeal to entire nations. In some way, they conceptually replace national currencies (though not doing it directly) or act as platforms for the development of local businesses and households.
Still, the key difference between a local cryptocurrency and a national cryptocurrency is that the former is not subject to any regulation and enforces decentralized economy. This is the most important issue with those coins as they offer an alternative to a state-run economy, which obviously doesn’t make governments happy. But, happy or not, they couldn’t put a lid on the emergence of local cryptocurrencies so far, and there are lots of them these days.
Regional Cryptocurrencies: Practical Cases
Auroracoin was one of the first regional cryptocurrencies to be introduced. It was premined in Iceland in the wake of a severe banking crisis, with 50% of its overall pool distributed amongst all Iceland citizens. Their tech savviness and political concerns allowed them to enjoy all the advantages brought about by virtual currencies.
Whether it was an initial inspiration or not, a bunch of similar region-specific cryptocurrencies soon followed. Such were PLNCoin from Poland, and SpainCoin and GreekCoin from more obvious places of origin.
However, with a notable example of Liverpool Local Coin, which is a Bitcoin fork devised for local businesses, most of them were more of a statement than an actual cryptocurrency. For example, eKrona, a cryptocurrency created in Scandinavia for Scandinavia, is marketed as a coin for true Vikings and bears no specific purpose except appealing to harsh Norsemen.
The political statements made with cryptocurrencies even go farther than that. Regions that seek to separate from countries they’re currently a part of, have also issued their own cryptocurrencies, most notably ScotCoin and CatalonianCoin. But even in the areas that seek no secession there is demand for a local currency. Indeed, longing for good old times, when there was no Euro, could easily explain the emergence of such cryptocurrencies as PesetaCoin or GuldenCoin.