Auroracoin – the national coin of Iceland

Auroracoin – the national coin of Iceland

Auroracoin is an Icelandic cryptocurrency and the first national cryptocurrency ever created. It aims at gradually substituting the Icelandic Krona an

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Auroracoin is an Icelandic cryptocurrency and the first national cryptocurrency ever created. It aims at gradually substituting the Icelandic Krona and the bitcoin.

The project was launched in February 2014 by a person or group of people who prefer to remain anonymous. The whole idea behind it is to address the problems Iceland has with the inflation and devaluation of its fiat currency. Auroracoin’s goal was and still is to enable Icelandic people to bypass the restrictions related to the existing currency financial system in the country as well as the control regarding the use of bitcoin there. With the announcement made by The Icelandic Central Bank that: “it is prohibited to engage in foreign exchange trading with the electronic currency bitcoin, according to the Icelandic Foreign Exchange Act”, it is no wonder why Auroracoin’s project has emerged.

On 29th of March 2015, the Icelandic foundation Auraráð was started in order to help the distribution and adoption of the new cryptocurrency. The formation received a contribution of a million Auroracoins and currently acts as an official representative of the cryptocurrency supporting its development and spreading the word of its invention. Since Auroracoin is completely Iceland-based cryptocurrency, anyone with an Icelandic ID can join the foundation.

About one year before the creation of the foundation, on 25th of March, 2014 the distribution of 50% of the total issued Auroracoins to the Icelandic population was started. The population back then ran to 330 000 people all of whom were listed in the Electronic National ID scheme provided by the government. By the end of July the same year, 31.8 Auroracoins were distributed to every citizen. This process was called airdrop and its last phase was completely finished on March 24, 2015. Logically, due to the large issuance of coins, the value of the currency dropped promptly after the start of the airdrop.

The airdrop aimed at increasing the popularity of Auroracoin within Icelanders and hopefully provide an incentive for them to start making use of it in their daily lives. The success of Auroracoin is still at state but a whole new national cryptocurrency trend might be on the rise. In fact, Denmark has just recently announced its plans to issue its own cryptocurrency called e-krone as its reserve currency. Who knows, the Nordic countries might only be the first of many others to introduce the conversion of fiat currencies into their crypto alternatives.

However, the Icelandic government still does not entirely support the Auroracoin due to the lack of tax payment on it. It is quite understandable why the authorities are concerned about the future of this cryptocurrency as it may have a negative influence on Iceland’s economy. Only the future will show whether or not their concerns are grounded and what the destiny of the country-based cryptocurrencies is.