Understand Complementary Cryptocurrencies

Understand Complementary Cryptocurrencies
on June 4, 2018

Complementary cryptocurrencies are a concept similar to complementary fiat currencies. They’re not standalone cryptos which hold their own value but, as the name suggests, they serve as helpers to the main cryptocurrencies. One example of a complementary cryptocurrency is Tether, whose value depends on manipulation of its available supply according to its current trading price against Bitcoin. Other cryptocurrencies which aren’t actively traded for fiat currency could also be considered complementary in some contexts, such when they’re used in order to participate in some ICO’s where an initial purchase requires a specific crypto.

Some cities and local communities have also adopted their own tokens for local business. For example, the city of Hull in the UK has its very own token called HullCoin. Citizens of Hull are able to do commerce, buy and sell anything using HullCoin. In Dubai citizens can also use emCash to buy and sell goods. In Lewisville, Texas, part of the greater Dallas, a candidate is proposing Blue Coin, a cryptocurrency specifically designed to support local police. Eurakos is a complementary cryptocurrency developed at the University of Girona, designed to promote local commerce in Spain. These are just some examples of complementary cryptocurrencies in the real world. Many more will appear in the near future as more local communities adopt their own tokens and coins.

Complementary cryptocurrencies can also be developed for charity and humanitarian work. When given proper training, poor communities can leverage cryptocurrencies to develop local businesses and promote development. By creating and deploying a regional coin, it is possible to avoid the higher fees of the main cryptocurrencies and maintain transaction fee structure low for the local project.

We hope this quick introduction to complementary cryptocurrencies has made the concept clearer. Local communities, even charities and humanitarian work, can develop and adopt their own cryptocurrency to promote regional development. Cryptos used for specific situations and which aren’t widely traded for fiat money can also be considered complementary depending on context.