Russian Farmer Develops His Own Cryptocurrency, the Kolion
Russians love their crypto, and they’re willing to do whatever they can to get it. Amid the backdrop of regulatory seesawing, several farmers are beginning to ditch the ruble in favor of a brand new virtual currency, the Kolion.
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Kolion – The Farmers’ Choice
Local farmers in Russia are turning to this new entity to pay for supplies and services. The currency gets its name from the town – Kolionovo (approximately 80 miles from Moscow) – where it is most used.
Banker-turned-farmer Mikhail Shlyapnikov is the man widely credited for giving the Kolion its rise to fame. Shlyapnikov moved to the city from the capital about five years ago. He required money to build his plant nursery, but ran into the same obstacles that many small business owners in Russia experience: banks charge around 12 percent interest when lending money.
“I didn’t want to suffocate and be a slave of the banks. So, I had to invent my own money, and I did. I’m my own bank, government and regulator.”
Getting It off the Ground
Shlyapnikov is referring, of course, to the Kolion, which he developed in 2014. Ironically, the Kolion didn’t start out as a digital currency, but as a paper-based bill, which was banned by a Russian court in 2015.
It was this ruling that caused Shlyapnikov to develop the e-form of the Kolion, which he introduced in April of 2017 through an initial coin offering (ICO). Reception was positive, and Shlyapnikov managed to raise over $500,000 USD through the offering.
At press time, Shlyapnikov says the value of the coin has jumped significantly since the ICO, and he now has over $2 million worth of Kolion coins.
So, How Do You Get It?
Interestingly, the currency cannot be mined with computing power, but is instead purchased using several other cryptocurrencies, or through a process known as “plowing,” which involves assisting residents with either farming or construction work.
Shlyapnikov says the currency is changing the way people do business in the area, and that about a hundred other farmers and suppliers have begun using it in neighboring villages.
For now, Shlyapnikov retains fairly modest goals. He thinks cryptocurrency has a big future in Russia, but at first, he just wants to concentrate on helping small or remote businesses thrive and be independent of Moscow and expensive traditional loans.
“I don’t want to expand yet because it will bring obligations I’m not ready for. I’m not ready to save the world or even Russia; I want to be comfortable and I want to share this comfort with the community.”
Will we see other villages like this begin to create and adopt their own virtual currencies? Post your comments below.
Images via Pixabay