Polish City Launches Stablecoin for Local Businesses

The authorities of Minsk Mazowiecki, a Polish city with a population of 37,500, have introduced a stablecoin called MinsCoin, aimed at local entrepreneurs, on the UrbanChange platform. This was reported by Blockworks.

UrbanChange issues stablecoins backed by USDC for use in cities.

The developer is Colu Technologies from Israel. The technical solution was made possible through Circle, Algorand, and wallet-as-a-service provider Magic.

In the initial phase of the program, users will be able to spend the “shopper-friendly” MinsCoin at 10 businesses. This number is expected to “significantly” increase in the future.

“Digital currency can provide insight into how such technologies can impact social interactions, economic participation, and community solidarity,” the statement reads.

Colu has developed applications for similar programs in several U.S. cities. In particular, residents of Houston can earn H-Points, Boston issues Boston points, and Utica (New York) has Halfmoons.

The implementation of UrbanChange in Poland is the first in Europe. Plans include launching tokens in other European cities, as well as in Jerusalem, Israel.

Individuals can earn local stablecoins by participating in initiatives aimed at achieving certain social or economic goals.

Cities looking to promote healthy lifestyles or public transportation can issue tokens for walking or bus rides, respectively.

According to the project’s white paper, whitelisted businesses can receive payments in local stablecoins and interact with similarly approved companies.

The roadmap includes deploying stablecoins on L2 solutions like Base.

Back in March 2022, Lugano (Switzerland) recognized Bitcoin, Tether, and the city token LVGA as legal tender.

On January 11, 2024, Coinbase partnered with Yellow Card to expand into 20 African countries. The collaboration will provide over half of the continent’s population access to purchases in USD through Coinbase Wallet, as well as USDC transfers on Base with zero fees.