A Crypto Utopia in Norway
Liberstad is a private anarcho-capitalist city in Norway. It has been called many times a delusional and foolish idea back when it was actually an idea. But after its launch in 2015, with millions coming in as investments are the form of cryptocurrencies and the Norwegian Krone, many adjusted their stance towards the private city.
The sole reason if Liberstad is to provide a government-less experience to its inhabitants. The city will provide private sector funded services for avoiding taxes. Furthermore, the city has turned its back on traditional currencies in favor of using cryptocurrencies as their new Medium of Exchange. Meaning that everything in the city will be purchasable with cryptos and cryptos only.
The cryptocurrency is called City Coin and will have a stable exchange rate according to the founders, in order to maintain a healthy and realistic economy within the city. If the Norwegian government had no problems with the city so far, it could start imposing some serious restrictions after this.
Why the Norwegian government may interfere
The reason is quite simple. Having an autonomous region in the middle of your territory spells trouble as your own residents may opt for that private jurisdiction. However, given the size of Liberstad, it is extremely unlikely to happen.
What could actually prove to be a threat is the free usage of cryptocurrencies in the city. Naturally, crossing “the border” will be easy for Norwegians and Liberstadians alike. Therefore the government is afraid that some of their regulations will be violated.
You see, Norway has some serious restrictions on various industries, the strictest ones are imposed on gambling operations. Having a “free-city” right in the middle of their country, with a decentralized currency, will prove to be a serious threat to their laws, says https://norskecasino.casino
Nevertheless, it is simply speculation as the Nordics have been getting more and more accustomed to cryptocurrencies as a whole. Thanks to their high affinity with technology and massive interest towards the Blockchain industry, regulating and “containing” activities could soon prove very simple for the government.
Therefore, a question needs to be asked. Was adopting cryptocurrencies by Liberstad a good idea? Or did they just sign their own death warrant? Only time will tell.