‘Citycoin’ : Solving Issues of Payments Across the Cyprus Green Line

The Green Line divides the island of Cyprus, and despite the existence of the Green Line Regulation, regulating commerce and crossing, the digital divide between the communities creates obstacles to payments and thus greater economic interaction. ‘Citycoin’ is a conceptual framework that seeks to evaluate if creating a payment infrastructure can be socially beneficial and potentially profitable. ‘Citycoin’ as conceptually presented here, is a payment rail created using a stablecoin, allowing for the reduction of obstacles to digital payments across the Green Line. By removing the high cost of transactions and providing the missing part of the necessary infrastructure to support full and unencumbered economic activity, ‘Citycoin’ can provide a significant increase in trade, especially in the areas near the Green Line, which have been traditionally more disadvantaged by the conflict. This can be especially true if the initiative is supported by the two municipalities of Nicosia, who have a track record of successful cooperation. The article estimates the volume of current transactions as well as suggesting how in practical terms this concept can take form in the island of Cyprus