This Is BitCoen, The First ‘Kosher’ Crypto-Currency
Graphic by Angelie Zaslavsky
By Ari Feldman August 10, 2017
A Russian entrepreneur has unveiled a “kosher” cryptocurrency called BitCoen.
In two months, when BitCoen has its “initial coin offering,” the cryptocurrency will join the ranks of Bitcoin, Ethereum and more than 900 other digital currencies that are traded directly between investors over the internet. The project is the brainchild of Viacheslav Semenchuk, a self-described “serial entrepreneur.”
The Russian news site CNews reported that the currency is being called “kosher” because 10% of its profits will be set aside to be used as interest-free loans for Jews. The currency will be accessible on Shabbat, but Semenchuk said that BitCoen was still kosher because its system is automated.
The currency will also be overseen by a “Council of Six,” a group of prominent Jewish leaders, according to Semenchuk. Any change to the currency would have to be ratified by the council. Semenchuk declined to identify the people on the council or any other investors.
BitCoen is an usual cryptocurrency because it will be centrally controlled. Bitcoin, created in 2009, is a peer-to-peer currency, with no central bank. New bitcoins can be created by anyone with sufficient computing power, in a process known as “mining.” BitCoen transactions will also be peer to peer, but only the currency’s council will have the power to issue new BitCoens.
Semenchuk told CNews that he has invested $500,000 of his own money into the project. He expects the currency to reach a capitalization of $1.5 billion in two years. According to the website, BitCoens will be available for $1 each starting October 9.
Contact Ari Feldman at [email protected] or on Twitter, @aefeldman.
Did you know that only 2% of Forward readers donate to support our nonprofit newsroom? That 2% make it possible for millions to read the Forward without a paywall or subscription — removing any barriers to the full and fair Jewish story.
But while the Forward is free to read, it isn’t free to produce. Big stories — like deep dives into the antisemitism data, political scoops or reporting trips to college campuses — take months of research and fact-checking. All while we keep you informed of what you need to know each day.
— Rachel Fishman Feddersen, Forward Publisher & CEO
Support our mission to tell the Jewish story fully and fairly.
