The new credit system offers users an instant, interest-free facility to spend together
Welsh businesses will benefit from a new complementary currency, the first in Wales, that aims to promote trade between small and medium enterprises.
Celyn is an electronic credit system where users can benefit from a zero-rate facility to do business. The aim of the project is to make exchanges thrive in the network.
“Bitcoin is for private speculation, Celyn is for the mutual benefit of businesses and communities,” said Eifion Williams, CEO of Circular Economy Wales.
Circular Economy Wales is a Community Interest Company Limited by Guarantee with the aim of building community capital in Wales.
Celyn was thought long before the pandemic broke out, but given the hardships many companies are facing from COVID, the goal is that it could potentially save many from collapse.
Lee Waters, Deputy Minister for Economy and Transport, said: “The whole point of this project is to allow us to build local wealth in Wales with the resources we already have.
“To make us more resilient to the shocks and the changes we are living through, from COVID to Brexit to all the issues of the climate change, that’s what Celyn is about.”
What is a complementary currency?
Celyn drew inspiration from Sardex mutual credit system, an experiment started in 2008 in Sardinia, which managed to save thousands of small and medium-sized businesses from bankruptcy and which its Welsh counterpart is trying to replicate.
Both are digital currency networks, made up of companies and businesses, using a currency equal to the pound or the euro.
Once inside the network, the company can sell its goods and services and purchase those made available by others.
No cash or bitcoin is used, it is not a virtual currency or a bartering system and is only used to buy or sell goods or services.
The ultimate goal is the increase in commercial exchanges between companies since accumulation is not possible.
“This is an opportunity for people working together, to trust each other, to create a mutual movement rather than just an instrument, to grow activities and build trust among each other,” said Malcom Hayday, chief executive of Charity Bank.
“One of the interesting challenges that is coming out of COVID, is the recognition that we are going to restart from the bottom upwards and localism is going to become increasingly an important aspect.”
Celyn launched its website, where FAQs can be found to clarify any questions, on December 11th on a virtual zoom event.