A small southern Italian town of 550 residents, Castellino del Biferno, has started minting their ain currency, called Ducati, as a method to support their local economy during the coronavirus Pandemic.

The town mayor Enrico Fratangelo, had been studying minting money for 12 years before having the opportunity to put his ideas to the test.

"We decided to mint money to brand sure the local economic system could withstand the impact of the state of affairs. Even so small this economy may be, there are iii or four businesses nonetheless open, without considering bars or pubs," Fratangelo explained.

Supporting the Economy

Ducati are distributed to residents based on their economic needs and can be spent on essential goods. In guild to minimize any confusion, the value of 1 Ducati will equal 1 euro. The town council received €five,500 from the government to issue food stamps, and with the addition of their own savings, they were able to fund the solution.

The entire process is managed locally with watermarked newspaper, with special care to ensure the notes don't transmit the virus, co-ordinate to the re-create shop possessor Antonio Lannaocone:

"We start off with watermarked paper, and so nosotros impress the banknotes — according to the design agreed with the assistants — on one canvass of newspaper. We then laminate the canvas, so that the bills can exist disinfected. Once it'south laminated, we cutting the banknotes with their final dimensions."

Every 2 weeks, the shops may return any Ducati to the town quango in substitution for the corresponding amount in Euros.

This isn't the kickoff fourth dimension

The thought of a heavily localized currency has been tried before in Italy in 2022. Gioiosa, also in Italian republic'south southward, is domicile to a group of asylum seekers and uses a local currency that is only accepted in local stores. Referred to equally "tickets", this approach helps to ensure that local businesses do good, defusing any potential tension with the new arrivals.

Does this demonstrate the need for a digital currency?

The electric current state of affairs facing economies around the world has brought to light the potential benefits of cryptocurrencies and this boondocks'due south solution is another footstep to that end.

The Ducati, although an innovative solution, would merely piece of work in a very small scale economy due to risks of contamination and counterfeiting increasing with increased popularity, in add-on to the high cost of production.

A digital version of the Ducati would wait very similar to a Key Bank Digital Currency, and would not have the aforementioned costs associated with Ducati being minted, nor would information technology hazard contamination or counterfeiting.