Moneycontrol
Last Updated : Feb 21, 2018 03:02 PM IST | Source: Moneycontrol.com

Liberland: The newly formed ‘nation’ running on Bitcoin and Bitcoin Cash

The finances of the nation depend on cryptocurrency donations chiefly in Bitcoin and Bitcoin Cash

If you are a cryptocurrency enthusiast and disappointed by the attitude of your country towards the emerging crypto assets, becoming a ‘citizen’ of Liberland can be an option for you.

The newly formed ‘nation’, Liberland, situated along the west bank of Danube river between Croatia and Serbia is currently accepting applications for ‘citizenship’. In order to be a citizen here, there are certain conditions which decide the eligibility. They include respect for other people and their opinion, respect for private ownership and a clean criminal record.

The nation was founded by an economist Vit Jedlicka in 2015. Most interestingly, the finances of the nation are run on cryptocurrency donations chiefly in Bitcoin and Bitcoin Cash. The nation also plans to issue its own token ‘Merit’ in April this year.

People who donate are already being awarded Merit as a reward, virtually making them a partner in the Liberland’s fate. The country is also in process of launching its legal system on blockchain technology.

Currently, Liberland is just a sandbank stretching 7 sq km in area and no one lives there. The landmass is part of the disputed border between Croatia and Serbia.

“The situation on the mainland in Liberland is still difficult as Croatian police illegally persecute all visitors and settlers,” Jedlicka told The Telegraph in an interview. “We are waiting for exoneration from the Croatian constitutional court but for now, our settlement has essentially moved to the river, where we host visitors almost on a daily basis.”

liberland

A rough boundary of Liberland. Google maps link to the area. Source: liberland.org

As per the 2016 financial data available on its website, the country earned an equivalent of USD 87,040 from Bitcoin which forms about 40 percent of its total income. The number could be far greater for 2017 as the value of Bitcoin soared last year.

Liberland’s financial strategy outlines “four key robust pillars” which are voluntary taxation; no government debts; minimal government expenditures, no fiscal policy; and free competition of currencies meaning no monopoly of legal tender.
First Published on Feb 21, 2018 03:01 pm
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