North Korea is supposedly preparing to develop its own cryptocurrency to dodge the strict international sanctions crippling its economy, VICE News reports.
The project was announced by Alejandro Cao de Benos, the head of “Korean Friendship Association,” a group that seeks to promote international relations with the Democratic People’s Republic of Korea (DPRK).
Cao de Benos told reporters that the token won’t be a digitized version of the North Korean Won, but that they’re still figuring out exactly what will give it value.
He also said it’ll be “more like Bitcoin or other cryptocurrencies,” which makes almost no sense and should be an immediate red flag for anyone paying attention.
Bitcoin is much like a commodity, in that nothing “backs” it — it gives itself value simply by existing. There are also thousands of “other cryptocurrencies,” but only a small fraction are based on an algorithm that incorporates Proof-of-Work (like Bitcoin). Source...