How does the Vilawatt currency work?
In order to get the maximum security with this currency, we have linked a currency with a dual system: on the one hand, it is a local currency that is developed with an online banking application called Cyclos. On the other hand, it is electronic money managed by an electronic money entity, that is, a digital bank secured by the Bank of Spain that must meet all the criteria.
Having this circuit we make sure one Vilawatt is exactly one Euro, so it can be shared at any time. And we also get the public administration to use it to collect their taxes, fees and other services.
We are talking about a social currency, that means that the Vilawatt is a complementary currency to the Euro, not a substitute for it. It is an additional payment system to the Euro.
What are the goals of the Vilawatt currency?
There are 3 main goals:
The first one is to be an element of stimulation of the local economy. If we get this currency to circulate around our community, we will have a multiplier effect of it and therefore, that euro that went before to another city in order to acquire a certain good, will remain in our city.
This boosts the local economy with a multiplier factor. There are different studies that say that any currency that circulates in a local area can multiply its economic effect by two, three and four times.
So…This Euro that begins to circulate in our city might be turned into four Euros at the end of the project!
The second goal has a social component. Apart from trying to stimulate the local trade, our currency wants to make sure that everyone who uses it has a public value: the value of energy sustainability. And this value is both for the user and for the businesses, as the business will have to meet our sustainability criteria in order to accept Vilawatts.
So…If I have 1 Vilawatt I know that I’m committed to the environment. If your business has it too, we are both committed!
The third goal is environmental. We are talking about a very dynamic zero-base economy for local consumption.
So…If we get our economy to circulate at the local community level, we also reduce the ecological footprint!
The fourth and last goal is related with the trade policies can be started around this. The shop or establishment that wants to make discounts on the currency can do it with this application.
So… Citizens can get commercial discounts and businesses increasing turnovers!
What will be the next steps of the Vilawatt currency?
The currency is starting to work right now; we can already sign up for users on the platform and start making economic transactions. However, we have two more challenges. The first one is that it becomes a trading platform for the city, so a user with his smartphone on the street, will be able to see in his device those establishments around him that agree to use this currency.
The second challenge is to start testing this digital wallet with blockchain technology. It is a change of future that we do not want to miss.