Poland joins the list of countries launching national cryptocurrencies

After Belarus, Estonia and a number of other countries, Poland has also decided to hop on to the cryptocurrency hype train. The European country has decided to launch a digital token that is pegged to its national currency. Researchers hope that this will pave way for a faster and securer digital alternative of their fiat currency. In order to be able to successfully launch the digital coin, the researchers and development will have to gain the approval of the government.
Poland is on its way to launch a national cryptocurrency. Unlike common cryptocurrencies, like those found at the top of Cointelligence's cryptocurrency list, the Polish cryptocurrency will not be pseudonymous. Developers might link the new coin’s exchange rate to the country’s fiat currency, the zloty (PLN). This will be done in an effort to protect the coin from the notorious volatility of the cryptoindustry.

The news came through the Polish news publication, Puls Biznesu. One of the teams, operating under the umbrella of the Polish Blockchain Technology Accelerator (PATB), is working on this project under the supervision of Prof. Krzysztof Piech, head of PATB. He is also leading a team in this regard in the Lazarski University in Warsaw.

The team has disclosed that the new currency is to be called the "Digital PLN" (dPLN). A basic version of this coin had already been developed and creators are now working on a more sophisticated version. Developers claim that the software will be ready for testing in about two weeks.

The project’s entire cost is estimated to be about PLN 12.4 million. The country’s National Center for Research and Development is already covering most of this amount. However, the project would still need to be approved by the country’s government first.

The team’s goal, as stated by Prof. Krzysztof Piech, is to provide the country’s economy with ultrafast “unprofitable money." The team’s claim of the currency being extremely fast is justified, as they have already reduced the processing period to less than a minute. Developers are working to further reduce it to less than a second by utilizing the Lightning Network.

Project’s developers are working on a "proof-of-rate" consensus. This means that only prominent parties or individuals, having most of the token units would be able to confirm transactions. This technology plays key role in minimizing the time needed for transaction processing.

If the coin’s exchange rate is linked to PLN's, then each unit would be worth 1 PLN and vice versa. The team also disclosed that they had been considering creating a blockchain-based banking system. Such a system would have minimized the operational costs by almost 35% but the idea had to be dropped due to legalities.

However, the other side of this story is that Poland's Ministry of Digitalization, which is responsible for dealing with major projects related to the digital world, has denied backing this project. The official statement of the MoD is as follows:
"…issues related to money trading (including cryptocurrencies) are outside the jurisdiction of the Ministry of Digitisation and the Ministry of Digitalisation is not involved in any way with the preparation of projects related to money supply in Poland.
The authorities responsible for the decision on supporting the development of individual payment instruments are the NBP and the PFSA."

Without the support of MoD and other ministries of the country, developing the cryptocurrency will be an arduous task for the PATB. While critics are quick to call the efforts of PATB, a hoax – the truth behind the project will eventually come out.

The latest news, if true, puts Poland on the list of countries that are looking forward to developing cryptocurrencies. Belarus and Estonia are some other countries that have recently announced their own projects related to blockchain.
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