The bail-in of Cyprus, when Cypriots were essentially mugged by their own government, remains a grim reminder of the fiat system’s extreme dysfunction. Where families and businesses can be ruined overnight to support a corrupt banking sector, something is clearly amiss. And the problem is far from isolated to Cyprus, with bail-ins now the “template” for resolving bank failures across Europe and much of the developed world.
Indeed, the EU just agreed to the creation of a central agency to administer future bail-ins.
The trampling of financial rights is not yet over for Cypriots. On March the 22nd, Cyprus Mail reported an outrageous new plan by their Internal Revenue Department. It enables the tax agency to summarily confiscate private property, including funds in bank account, for anyone considered to be in arrears. Nowhere in this process is there any legal judgement or provision for appeal. Apparently, such draconian measures are necessary to satisfy the terms of the loan made to Cyprus by the International Monetary Fund, European Central Bank and European Commission.
Again, it seems Cyprus is just the template. In the UK, the most recent Budget grants Her Majesty’s Revenue and Customs the power to raid your account should they determine that you owe in excess of £1,000 in taxes. Politics.co.uk bluntly describes this as a power grab, as there is no trial and only a two week window in which to appeal once your funds are seized. The only limit is that HMRC must leave at least £5,000 in an account.
Governments will likely seek to legitimize such police state tactics as “going after tax dodgers,” but as we saw in America when the Internal Revenue Service victimised Obama’s political opponents, the precedent for abuse is set. In such an environment, when bank failure leads to depositor haircuts and funds can be siphoned out by the government at will, who in their right mind would store significant wealth in a bank account?
A properly-secured cryptocurrency address, if it can even be traced to you, requires your password to spend. This makes the seizure of funds a far more daunting proposition for the state. Unfortunately, it seems that widening social inequality is driving the governmental descent into tyranny at a pace far in excess of cryptocurrency adoption. Aiming to raise awareness and bring more people into the fold of fair money, at least in the beleaguered nation of Cyprus, is Aphroditecoin.
Auroracoin started this “national crypto” ball rolling with the idea to gift AUR to every Icelandic citizen. We’ve since seen Mazacoin aim to do the same for Native Americans, Spaincoin for the Spanish, and now Aphroditecoin for Cypriots. No doubt further national cryptos are in the works.
While the stats on CoinMarketCap.com can be misleading due to the as-yet-unallocated premine (which in Aphroditecoin’s case is 75%) being counted as part of the total supply, Aphroditecoin will nonetheless draw a lot of notice as it now stands in 4th position of mineable coins.
According to the coin’s official BitcoinTalk thread, the specifications are as follows:
Block reward: 10 Coins
Block time: 5 minutes
Block halving: No
Max supply: 30 million
Available coins to mine: 7.5 million
The Cypriot national database will be leveraged to allocate 25,4 APH to each citizen. At 885,000 citizens and a current price of $2,92, the implies a giveaway of roughly $74 to each citizen. We’ll have to follow the impending Auroracoin launch on the 25th of March for clues as to how price will behave once the premine is awarded.
Reuters has reported on Aphroditecoin, framing it as a boon to Cyprus which may repair some of the damage done to their economy. We certainly hope this is the case, and that many Cypriots are excited to receive and start using their APH.
As Nicos Anastasiades, president of Cyprus through the bail-ins, has it:
So why not somewhere safer than banks? Why not Bitcoin and now Aphroditecoin?
Last modified: March 23, 2014 23:36 UTC