I have my doubts about Colu. It’s a VC backed company and therefore has to return them profits.
It’s good that they’re seeking to make a cryptocurrency usable in the real world, and they’ve made an app that’s easy to use, but I haven’t heard they’ve addressed the mining /energy issue. So would it be able to scale up to even handle the potential transactions of a city like Liverpool.
Here’s some Web extracts:
The Liverpool app that sidesteps the banks
14 September 2017
Duncan McCann… an economist with New Economics Foundation who researches local digital currencies… thinks local digital currencies like Colu are a good idea, but he has some serious reservations.
"Local currencies seek to stop money escaping, the ‘leaky bucket’ argument we call it. They try to keep it circulating in your own community to do more good.
"Most local currency designs maximise the potential for the money to stick. There is some irony that this model that Colu is offering at its core extracts money to the mother company, which in this case is Colu [in Israel]."
Most other local currencies in the UK and Europe are run on a not-for-profit basis, he says.
The incentives Colu offers to new joiners can only last so long, he suggests.
"The big danger is that if no profit is being made, or worse they start making a loss, that they will just cancel the app and all the hard work is lost in an instant.
“Then it becomes very hard to start another local currency because there is so much bad feeling.”
Colu Mixes VC and ICO for $14.5 Million Fundraise
Dec 13, 2017
Colu raised $9.6 million from a group of investors that included Aleph, Spark Capital, Digital Currency Group and former Thomson Reuters CEO Tom Glocer.
Disclaimer: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Colu.
It looks like the good old capitalist system cashing in on the surge in local currencies - and taking their cut.
I would, by far, prefer a currency/mutual credit system co-operatively owned and run by co-operatives, for co-operatives.