“Hull City Council is creating its own Bitcoin-like digital currency called HullCoin which it will donate to people in return for carrying out voluntary work.
The unprecedented move is a bid to “tackle poverty” and boost the local economy. Struggling residents will carry out “voluntary work” and receive HullCoins as payment. These digital coins could then be used to pay rent or council tax, or buy other goods and services such as fruit and vegetables. Council workers are currently investigating whether deals could be signed that would even allow them to be used at highstreet shops such as Asda.
Those virtual earnings would not be taxable or affect any existing benefits claims because digital money is not yet treated as traditional currency by HMRC or the Department for Work and Pensions, the council said.”