Amsterdam to launch its own digital currency to promote local economy

Amsterdam plans to launch its own digital currency in the next four years. The coin can only be used in Amsterdam at the local entrepreneurs with the idea of boosting the neighborhood economy. "It ensures that the money really continues to circulate in the city," GroenLinks city councilor Elisabeth IJmker said to AT5.

The city council was inspired by Sardinia's Sardex, a local currency that residents can use with local entrepreneurs. "Because what matters is that a lot of money is earned in the city and the money leaves the city again through platforms and large companies, for example. So for local SMEs, it would mean more work and more income," IJmker said. 

Amsterdam is still working out the exact interpretation, for example, how consumers will get the coin, what it will be linked to, and who will participate. But IJmker is excited. "I think that if you live in Amsterdam, you also see that certain small businesses disappear and that specialty shops are having a hard time, and you can support them with this."

AT5 spoke to several Amsterdam residents, who were less enthusiastic about the idea. But according to economist Jalal Selmani, the development fits within the digitization of money. "We all know bitcoins. In that sense, it's interesting, and I think it's beneficial that the government says: let's experiment. Twenty years ago, they would never have said that," he said to the broadcaster.

Selmani added that the currency's success depends on many things, including being easy to use and having entrepreneurs willing to cooperate. "The aim of such a coin is that everyone will use it. If only a part of the local population uses it, it is questionable whether it is worth anything." The city council will have to launch a good PR campaign for the coin, he said.