- Afrikaner town in South Africa will introduce "e-ora"
- Currency expected to reduce costs and dependence on banks
- System could be attacked by hackers
(CNN)Orania is often described as a relic of apartheid.
The rural town in South Africa's Northern Cape province was established in 1991, shortly before the collapse of the apartheid regime, and it has been exclusively inhabited by white Afrikaners ever since.
Spokesmen say there is no racial discrimination in Orania, but the foundational imperative to preserve Afrikaner culture effectively prohibits racial diversity.
In one respect, however, the controversial community is forward-looking. Orania is about to launch its own digital currency.
The town of around 1,300 people already uses a local currency, the ora, which is printed by Orania's own chamber of commerce and distributed through its central bank.
Ora notes are technically vouchers, pegged to the South African rand, which expire after three years.
The digital version will be accessible via an app that allows users to buy "e-ora" from the central bank, and then trade them with each other and local businesses on smartphones. The digital ora will have no expiry date.
The initiative is intended to further the town's independence -- some Oranians even aspire to an independent Afrikaner state -- as well as to allow more efficient transactions. "E-ora" would save Orania the cost of printing its paper currency, and trading digital currencies between smartphones can avoid the fees that apply to certain credit card transactions.
"It is basically electronic cash that will be moved from wallet to wallet with every transaction without the commercial banks standing in the middle," says Peter Krige, Orania's co-ordinator of the scheme. "In this way friction and cost is removed from the transaction. Both consumers and retailers will save between three and five per cent per transaction."
Prototypes have already been successfully tested, he says, and the new currency could be in circulation within a year.
Proof of concept
The Afrikaner town is partnering with prize