Unlike conventional digital wallets, AL-COIN is a non-refundable currency. Credit: New Africa / Shutterstock.com
A Spanish town has created its very own digital currency to encourage shopping in local markets. Named AL-COIN, the initiative has already signed up 48 businesses and 300 buyers, who can now make purchases without carrying a single euro or bank card.
The pioneering move in Alcoy, Alicante, will be officially presented at the III Congress on Big Data and Smart Cities, scheduled for October 15 and October 16 at the city’s Urban Technology Park. Municipal officials explained that the project had already undergone technical and regulatory testing, validated through the campaign Bo Digital Joves Mercat d’Alcoy.
“This initiative has established Alcoy as a trailblazer in Spain, showing that local administrations can implement digital payment tools while complying with European financial regulations,” the council underlined. Officials added that the scheme demonstrates how “responsible digital innovation can be promoted within the existing legal framework, acting as a lever for boosting local trade.”
AL-COIN sets a precedent in Spain
Unlike conventional digital wallets, AL-COIN is a non-refundable currency, designed exclusively for use in municipal markets. It cannot be transferred between users, has a programmed expiry date, and is limited to the local retail ecosystem. According to the project’s promoters, the platform has successfully handled stress tests, managing up to 300 requests per second.
The system also features real-time monitoring with updates every five minutes, alongside artificial intelligence modules capable of detecting anomalies. “The success of this pilot project sets an important precedent for other Spanish municipalities,” sources added.
Presentation at October congress
The Smart Cities and Big Data Congress is jointly organised by Alcoy Council and the Alcoy campus of the Polytechnic University of Valencia. On Thursday October 16, professor Carmen Pastor and Fernando Raduan, managing partner at RadWare Labs, will present the proof of concept of AL-COIN, developed under the Prometeo Excellence Research Project. Their talk will be followed by a round table discussion entitled Proof of concept. Corporate promissory notes: technological innovation and regulatory challenges.
The debate will be moderated by Pastor and will include contributions from José Ramón Morales, partner at Garrigues; Ignacio Alamillo, lawyer and director general of Astrea La Infopista Jurídica and collaborator of the Legalcripto research group; together with representatives from the Valencian regional government and the University of Alicante.
Digital payments in local markets
Alcoy Council stressed that the project highlights the potential of municipal resources to drive digital solutions, while meeting key regulatory conditions identified by Legalcripto, such as geographic limitation, direct trade agreements, technical restrictions, public interest purposes and academic collaboration.
The operational management of AL-COIN has been overseen by the Chamber of Commerce of Alcoy, while its legal and technological design was developed by the Generalitat Valenciana’s Prometeo CIPROM/2022/26 research project, led by Carmen Pastor.
The pilot, which runs until Monday September 30, includes load testing and the production of a final report to support replication in other Spanish cities. Progress can be monitored in real time via the following panel: http://ia.baes.es:5000/