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As Catalonia is working on being an independent state from Spain, they are also working to create a new currency of their own.
With the help of experts from Fintech in Estonia, the digital currency is being worked on specifically for that region in a time when Spain is working to fight the separatism that Catalans badly crave for.
The whole point of having a different currency is to detach themselves from the Central Bank in Europe and Spain. This will mean that they will not be controlled by Spain and the European Union who had threatened them of not using the Euro if it became independent thus they would lose access to the luxury of using the single market. CatalanBit was thought out as a means to give the people of Catalonia financial independence through a system that is tailored to suit the needs of the growing population so that they can determine their own economy.
CatalanBit is not owned by anyone thus it is an open source that seeks to help the people to break free from the shackles of the Euro and enjoy financial freedom but the move to have their own currency is seen as self-inflicting harm that has not been properly thought out.
Catalonia was previously an independent state with their own laws, language and customs way before the civil war, for this reason they believe their fight for independence is to reclaim their glory free from the rule of the Spanish government. Catalanbit is one way of resistance of Spain and by coming up with the currency, they want to show that they can do without the Euro.
Spain as we know it today is as a result of the defeat of Valencia and Catalonia in the seventeen hundred and all other islands that fell later on brought about Spain’s centralized government.
Catalans contribution to Spain’s GDP has made them to believe that they are giving a good portion. They however believe that they are not getting much in return thus making them feel like separating would be a better option for them. This is further fueled by the fact that Spain went through an economic crisis in 2008 and has not fully recovered from it. They blame the centralized government of Spain and they believe they can do better on their own. Being an industrious state, they believe their resources will be able to fend for them. Spain on the other hand are fighting this separation because they know that losing Catalonia will be a huge loss and will take the country backwards plunging them to a more difficult economic meltdown. The EU will also be affected badly because of the membership of the Eurozone.
So, what will be the impact of Catalonia getting rid of the Euro?
Catalonia will suffer massively and their Catalanbit will reduce in value because the products that they will be importing will be so expensive. This is as a result of having very large economic blocs as neighbors. The cost of living for the people of Catalonia will sky rocket.
The economy will also weaken because international investors will not be willing to invest in a country where most people will rush to the banks to withdraw the money they had saved to avoid the money from losing its value to the new weaker currency. This can only be avoided if the government brings about capital control making it impossible to remove the money from the country.
The fight for the Catalans to have an independent country is not an easy one and the hurdles are too many and too complicated. It might take years before they finally get what they want and be at a place where not Spain nor Catalonia will suffer economically.