The FIMKrypto cryptocurrency includes a number of innovations, such as a basic income for all residents of Finland.
THOSE missing the old Finnish markka abbreviation FIM now have a 21st century replacement. A new digital cryptocurrency administered by a Finnish non-profit association began trading in July. It is called FIMKrypto, or FIMK.
Soon after its introduction, FIMKrypto jumped up the cryptocurrencies ranks. Although merchant acceptance is still slow, it is currently the 37th largest cryptocurrency in terms of market capitalisation, according to coinmarketcap.com. Bitcoin is the largest, with a market cap of about 3.8 billion euros, but FIMKrypto comes in at a respectable 513,000 euros. Still, these cryptocurrencies remain small compared to traditional currencies backed by central banks. The money supply of euros is 9.3 trillion euros and there is the equivalent of 260 billion Swedish krona in circulation.
"There are hundreds of cryptocurrencies, most of which are 'clones' of Bitcoin or its derivatives with little, if any, fresh innovation," says Svante Lehtinen, president of the association Krypto FIN ry. "FIMKrypto is cryptocurrency evolved, based on the second generation of crypto platforms that are not just currencies but consist of a number of extended functionalities."
At its heart, a cryptocurrency is a medium of exchange which uses cryptography to secure transactions and the creation of new units. The supply is regulated by a predetermined technical protocol instead of via open market operations by a central bank. A cryptocurrency can also be bought or sold using traditional currency at various marketplaces.
In January of this year the Bank of Finland said Bitcoin at present does not meet the definition of money. Money has historically performed three main functions: a medium of exchange, a unit of account and a store of value. The central bankers said that as a medium of exchange Bitcoin depends upon mutual agreement of buyer and seller, and its purchasing power and stability were not dependent on any responsible authority. Instead, the bank considers Bitcoin as like a commodity.
DAVID J. CORD
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