News From The Crypto Currencies Scene

Hull City Council joining the online currency trend with HullCoin

Hull City Council joining the online currency trend with HullCoin

Hull City Council, an organisation line many other similar ones is suffering from serious reductions' in funding -- has taken a new approach to the austerity there and come up with its  plan to solve all economic troubles: its own version of Bitcoin dubbed Hull Coin.

The whole idea of HullCoin is to reduce poverty: residents with financial issues will be performing unspecified 'volunteer' work and in return they'll be rewarded with HullCoin. The newly minted digital coins will in turn be used for payment at the food bank, rent or council tax.

HullCoin will function very much like all of the other crypto-currencies (it's constructed by a combination of Ven and Feathercoin). The council will be responsible for mining it by using a seriously upgraded PC and then the recipients will be issued wallets - similar to Bitcoin.

The idea of doing volunteer work and not paying council tax is very positive but it's not going to  solve the city’s financial troubles. If a larger number of people stop paying their council tax in pounds, that will mean that Hull Council will be out of pocket at little - it would be more or less the same if people paid in pounds. So effectively, Hull Council is printing money.

And we have the cost of setting up a new crypto-currency, which might be substantial. The council have released a statement that the hardware for it was purchased by an anonymous benefactor with his own money and noting will be charged to the taxpayer.

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