It has recently been revealed that Tel Aviv, a city in Israel and one of the most prominent tech hubs that it will be running a new blockchain and cryptocurrency project designed to boost its growing economy.
The problem with cryptocurrency is with its volatility and how it is extremely vulnerable to outside market influences. This has resulted in many retailers and merchants showing reluctance in accepting digital assets as a legitimate form of payment. This subsequently has led to the crypto-owners being in the dark, and unable to use their coins for goods and services.
However, according to reports, Tel Aviv is looking into ways to get rid of this problem. One of those ways is the region’s new pilot program, which was launched on May 5. It is set to last for one month and will offer rewards points to all people who use crypto to make purchases with local merchants through what’s known as the Colu app. Once users spend approximately $30, they will earn about 25 digital city currency units. The money can be spent at any outlet that operates through Colu’s payment system.
CEO of the Tel Aviv Foundation Hila Oren comments:
This way, you support the local businesses because people buy more from those little businesses, and (part of) every transaction is donated to a social cause.
The first social cause that will benefit through the Colu program will be what’s known as the “Children of Music” project, based at the Lev Yafo Youth Center. The platform will earn three dollars of every transaction that occurs during the pilot project.
The project is part of what’s known as the 100 Resilient Cities program, which was created by the Rockefeller Foundation in the United States in 2013. Among the other cities taking part in the program include Belfast, Northern Ireland; Milan, Italy; Addis Ababa, Ethiopia, and Cape Town, South Africa.
After the project is over, Tel Aviv will publish a report of the results and determine if crypto usage was successful enough to continue. Granted they decide it is, the project will last permanently from there.