On Friday the Swiss city of Wetzikon — previously best-known for its idyllic pastures and church buildings — launched a blockchain-based program to help small and medium-sized native companies affected by the Coronavirus pandemic.

Valued at 250,000 Swiss francs ($280,000), the preliminary support disbursement might be funded with a municipal credit score line earmarked for the Coronavirus and might be distributed to the roughly 25,000 inhabitants of Wetzikon within the type of an eCoupon value 10 Swiss francs. 

Residents can entry the disbursement by way of a smartphone app, “ecoo,” which might be utilizing the help program as a pilot trial for its platform. 

In response to their web site, ecoo is designed to assist entities akin to governments and occasion organizers distribute earmarked funds within the type of cash and factors, and was constructed on the Tezos blockchain by way of a collaboration between the Swiss companies Papers AG and a number of subsidiaries of Farner Consulting AG. 

On the app residents will be capable of convert their coupons into “WetziKoins” that they will later use to make purchases at native firms. Native enterprise homeowners can then convert the forex again into Swiss francs from the city administration, additionally through the app. 

Ruedi Rüfenacht, Mayor of Wetzikon, stated of this system: “Below the present circumstances it’s crucial for us to behave in favor of the native financial system in a sustainable method. With ecoo, now we have discovered a viable resolution to inspire the folks of Wetzikon to buy in native shops as an alternative of simply shopping for on-line or from wholesalers outdoors our city. ”

Wetzikon will not be the one authorities that has explored utilizing blockchain know-how as a response to the Coronavirus. Financial institution of Canada exec Timothy Lane has earlier referred to as on central governments to organize for Central Financial institution Digital Currencies (CBDCs) in an effort to encourage cross-border digital funds.