News Russian Farmers Revive Illegal Paper Currency Through Tokenization

Russian Farmers Revive Illegal Paper Currency Through Tokenization

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A village around 100 miles outside of Moscow may well have just 9 people, but has previously managed to attract the attention of all Russia.

Kolionovo has “banned government officials from entering without a note proving their mental health and a recent fluorography lab test to prove that they do not have tuberculosis.”

While Mikhail Shlyapnikov, a former banker who opted-in for the farmers life, was arrested in 2015 for creating a paper based local currency called kolion, which was then declared illegal tender.

But the banker is back at it, now with a kolion token which arguably can’t be banned easily. The problem is farmers there get paid only twice a year, creating a liquidity shortage, but the banker, so being a banker, came up with a simple solution.

In effect, they issued promissory notes, mimicking the promissory notes in your pocket, but this time they have done so in a token form and unlike many other cryptos, or indeed the cash in your wallet, kolion is actually backed by real consumable produce.

For the paper version, “the kolion [was] pegged so that 1 kolion is equivalent to 10 kg of potatoes and 2 kolions are pegged at 10 eggs.” For the token version they only say:

“It is charged with features of a ‘loyalty card’: each token owner will be eligible to benefits – discounts for goods and services in the Kolinovo ecosystem.”

The currency token has seemingly attracted a market, handling $11,000 in trading volumes during the past 24 hours, giving it a market cap of nearly $1 million after raising $510,000 from 103 participants in an ICO held last year.

Russian Farmers Revive Illegal Paper Currency Through Tokenization
Kolion recent price action.

That’s the token’s recent price action which is currently trading on Tidex and apparently is finding some use within the village which operates as a self-sufficient co-operative of sorts. They says:

“Project development began in 2007 on the basis of the new model of the rural economy, which relied on freedom, mutual aid, self-organization and self-sufficiency, as well as simplified schemes of fair and private cooperation, openness and trust.

Project participants are a number of friendly farms, legal entities engaged in production, consumer society, private subsidiary farms, and individuals. Almost all the participants already have the required production facilities, means of production, machinery, equipment, and land.

The range of products and services is broad enough: from food to complex modules of special equipment for high-tech production. Today’s volumes of local production completely satisfy the needs of the participants of the ecosystem and are also freely implemented in the open market, donated to charitable and social purposes.”

Making this very unknown token, hidden down the 800th rank out of all some 1,500 cryptos, a very interesting project as it appears to satisfy a local need, so bringing to the most ancient profession, the very newest technology.

Copyrights Trustnodes.com

 

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