A groundbreaking initiative is currently underway in Mannheim, a lesser-known city in Germany. The aim of this project is utilize Bitcoin and blockchain technology revolutionize the city’s retail infrastructure, transforming it into a “Cryptocity” that showcases the practical applications of cryptocurrency for both retailers and consumers.
The concept of Cryptocities has gained significant attention in recent years as innovative developers strive to highlight the potential of blockchain and cryptocurrency within existing business and retail frameworks.
The Cryptocity initiative in Mannheim is being led by Nimiq, a Layer-1 payment blockchain. So far, 22 stores in Mannheim have adopted cryptocurrency payments as part of this initiative. These include supermarkets, restaurants, and shops, and it’s not just local businesses that are involved. Global brands such as Footlocker and Burger King have also joined the movement.
To attract retailers to set up shop in the Cryptocity, Nimiq allows merchants to process payments made with digital currency while still receiving euros in their bank accounts. This enables companies to easily track their tax obligations and avoid fluctuations in the value of digital assets.
Currently, nearly 6.9 million people in Germany own some form of cryptocurrency, which accounts for over 8% of the population, according to research conducted by Triple-A. With an estimated 20 to 30 million crypto owners in neighboring European countries, Nimiq hopes that Mannheim can attract crypto enthusiasts from far and wide.
One of the primary goals of the developers behind CryptoCity Mannheim is to integrate cryptocurrency with the existing payment infrastructure. To achieve this, the team is developing a blockchain payment scheme that allows retail payment terminals to recognize and accept digital currencies by default.
Nimiq is not alone in its vision to build a futuristic Cryptocity. Partners in this venture include paytech firm Nexi, which has a vast network of existing payment terminals, and Bluecode, a company that develops barcodes for processing mobile-based payments at the point of sale in a matter of seconds.
Cryptocities have become a prominent concept worldwide, with numerous projects currently in development. From plans to establish a Cryptocity in El Salvador to transforming an area of the Nevada desert into a Bitcoin-based “smart city,” the idea of Cryptocities has firmly taken root in the public consciousness.
Even global music star and entrepreneur Akon is involved in the development of a $6 billion Cryptocity in Senegal, which he envisions as a real-life, tech-empowered “Wakanda,” referencing the fictional location from the Black Panther film series. It’s certainly an unexpected career move!
Ambitious goals like these are not as uncommon as one might think. Many forward-thinking figures in the blockchain industry and beyond recognize the potential for automated, tech-powered cities to drive business, innovation, and improved living conditions.
Nimiq’s ultimate vision extends beyond retail stores and payment channels. Max Burger, the platform’s Ecosystem Development Lead, sees the potential for fully integrated “smart cities” where even city administration is handled via a blockchain network. However, for now, the focus is on retail, shopping, and experiences where cryptocurrency can be used as a form of payment.
The goal of Cryptocity advocates is to first demonstrate the practicality of blockchain and cryptocurrency payments and then attract merchants and customers to adopt the technology. The ultimate vision is to optimize and accelerate entire cities using blockchain technology, potentially in conjunction with other cutting-edge technologies such as IoT devices and AI.
Whether this vision will become a reality remains to be seen. Who knows, we might even get hoverboards.