In 2015, a quasi-state on the border between Serbia and Croatia (Central Europe) was created. It was recognized only by the same pseudo-state entities, namely, Sealand and the Kingdom of Northern Sudan.
The president of the republic Vit Jedlicka has long stated that Liberland is a new type of state and society based on direct e-democracy and cryptocurrency. Many folks have argued over which cryptocurrency would be the basis of its financial system. Almost all of them have agreed on the opinion that it would be Bitcoin.
At long last, we’ve found out what kind of crypto the state would offer to its “citizens”. This is not Bitcoin at all. An ERC-20 token called Merits will be created by the end of November. As planned, its price should be equal to $1. In fact, we are talking about the creation of another stablecoin. We have big doubts about its real backing by the US national currency. But let’s not reach any premature conclusions, because even Bitcoin has seemingly become a stable asset.
We have witnessed a practical embodiment of the growing popularity of blockchain technology and cryptocurrency. But using crypto by the self-proclaimed states is a wake-up call. In the case of Liberland, things are not so bad. However, this trend may spread to terrorist or militarized quasi-state formations (for example, Donetsk and Luhansk People’s Republics, ISIL, and Somaliland). This will be a blow to the reputation of the entire crypto industry. As you know, Bitcoin has not been used to finance terrorism in the EU.
We are really looking forward to a decisive step from real democratic states, aimed at moving to the “blockchain democracy” and equalizing the statuses of crypto and fiat currencies.
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