Solidarity cryptocurrencies as digital community platforms

ABSTRACT

We investigate the phenomenon of solidarity cryptocurrencies by combining the societal and communitarian aspects of the traditional community currencies with the the blockchain architecture chosen in a cryptocurrency project. We classify and analyze 20 selected solidarity cryptocurrencies from different countries according to three critical aspects of solidarity cryptocurrencies: scale, territorial scope and price stability. Analysis of these aspects is critical to understand the solidarity cryptocurrency concept that connects the originally separated universes of traditional community currencies and cryptocurrencies. This paper contributes to explain the emergent solidarity cryptocurrencies phenomenon by describing particular types captured by our classification. The main findings about solidarity cryptocurrencies in this study are, first, the alignment between type of governance and the respective architecture platform; second, those with closed governance are more likely to be pegged on fiat currencies or other stable measures; third, those focused on local issues tend to have a higher level of adoption.

KEYWORDS:

• Solidarity finance
• cryptocurrencies
• blockchain
• digital platforms
• community currencies

Disclosure statement

No potential conflict of interest was reported by the author(s).

Notes

1 Auroracoin Rich List of addresses with a balance of at least 1 USD at https://bitinfocharts.com/top-100-richest-auroracoin-addresses.html

Additional information

Notes on contributors

Eduardo H. Diniz

Eduardo H. Diniz is professor at Escola de Administração de Empresas de São Paulo at Fundação Getulio Vargas (FGV), and researcher of the Center for Microfinance and Financial Inclusion Studies, also at FGV. He has published more than 30 papers about digital financial inclusion in academic journals including MIS Quarterly, Information and Organization, and Information Technology for Development.

Adrian Kemmer Cernev

Adrian Kemmer Cernev, a professor of business management and IT, has researched on innovation, fintech, blockchain and cryptocurrencies, and ICT for Development (ICT4D). Recently he has published book chapters and teaching cases regarding fintech, social development and blockchain business.

Denis A. Rodrigues

Denis A. Rodrigues, a professor of public management and Phd candidate, has researched e-government, blockchain, and ICT for Development (ICT4D). Recently he has published book chapters and teaching in his field.

Fabio Daneluzzi

Fabio Daneluzzi, MBA, conducted research related to blockchain, cryptocurrencies and innovation. Experienced Product Manager in financial services, real estate and tech companies.