A care home company chain has decided to launch its very own Bitcoin-inspired cryptocurrency for its residential properties for the elderly. The aim of which is to enable its residents to pay for their rooms or apartments without having to fret about having cash on them.
Who is the company?
The blockchain technology scheme has been launched for the residents of Carlauren’s Lifestyle Resort and Care Homes. The trial project enables residents of the properties to purchase ‘C-Coins’ for the price of £70 each. The amount is the equivalent price of the price of one night stay in Carlauren care home or a resort (the cost is taking into account the amount it would be for the room or building only, not also taking into the account the costs of care.)
Providing security for residents
Carlauren’s Lifestyle Resorts and Care Homes says that what makes this Bitcoin-inspired cryptocurrency particularly different is that it offers an unprecedented amount of security for its customers.
The business has stated that it will always be able to buy them back off residents for £63 in total. That means that the risk of the elderly investing in cryptocurrency, and then potentially losing it all, is greatly reduced.
Why has cryptocurrency for care homes been launched?
According to the pioneering company who has recently launched this scheme across its care homes, there are a number of factors leading to its creation. Reasons include providing an innovative way for the elderly and their children to invest accordingly in their room over a long period of time. Essentially, it works in quite a similar way to a timeshare scheme. This is because these coins are tradable, as they could then be sold on an exchange, making these coins an asset for family members after the resident has died.
There remain some questions over the security of this cryptocurrency in care homes, according to reputable outsider sources. The CEO of the care home franchise has stated that the bad press cryptocurrencies have received of late has led to his businesses enforcing additional procedures to ensure that the C-Coin is as safe as possible for any investors.
Nevertheless, a BBC technology correspondent who looked further into the scheme posed doubt over the apparently extensive measures enforced. The correspondent found that it was possible for anyone to sign up and buy the coins, with seemingly no checks in place. Theoretically, that means that it would be possible for outside investors to buy a large number of coins, in the hope of making a profit when the tokens sell out. (The business has issued 500,000 of them overall).
The Competition and Markets Authority (CMA) has also warned people to be reasonably cautious of the scheme. The regulatory watchdog did not specifically comment on the care home company in question, but did inform the BBC that: ‘requiring care home residents to pay for goods or services in cryptocurrency may raise potential consumer protection concerns’.