Frosti is a PM in iceland and one of the most notable voices against the use of auroracoin. He later contributed to a popular central bank document released in 2015 describing a new monetary system for iceland
https://www.google.co.za/url?sa=t&source=web&rct=j&url=https://www.stjornarradid.is/media/forsaetisraduneyti-media/media/skyrslur/monetary-reform.pdf&ved=0ahUKEwi2r-SdosLVAhUqCsAKHfpyAAEQFggxMAk&usg=AFQjCNGf-ZJCeggKfE4XkFLSZ2fOIUCx1w ...
You can find his blog @
www.frosti.is and when you search auroracoin you will find several posts. I translated one here...
Auroracoin money fraud?
February 7, bings news of plans of unknown but extremely kindly parties who intend to give every Icelander 31.8 auroracoin on March 25th. Icelanders can then use Auroracoin as a currency instead of crowns. Thus, the nation will be free from "currency controls and dilution of the currency".
However, there are many indications that there are money fraud and violations of law.
Ever since the Bitcoin chips have appeared in the field, similar artificial gems have emerged like spikes. It's even more fun to pretend that the advocates will succeed in convincing the public to accept this synthetic chips as a currency.
Auroracoin marketing seems to be giving to most Icelanders 31.8 Auroracoin. The plan is for the Icelandic public to use Auroracoin as a currency in their transactions, or to store liquidity. Auroracoin's website appears to be limited initially, and it will grow slowly. Thus, it is implied that supply is rising slower than demand and prices will rise accordingly.
It is announced that in March, up to 10.5 million Auroracoin will be in circulation here in Iceland. (330,000 x 31,8).
But nobody knows who is behind Auroracoin and nobody knows how many Auroracoin they store for themselves. The anonymity is hardly unfounded and raises suspicions that this is illegal fraud.
That's how the cheat could be: Auroracoin men make 10.5 million Auroracoin and invite every Icelander who wants to pick up 31.8 Auracoin. Let's hit this and 100,000 people receive a total of 3.18 million Auracoin gefins. If the public in Iceland continues to use Auroracoin in business for some reason, the price may increase as has happened with Bitcoin.
Let's say that the price of 1 Auroracoin will reach 100 kr. Then those 7.82 m Auroracoin, whose initials, saved themselves worth $ 782 million. Then they could quietly sell them. Of course, the vegetation could be much smaller, but still easily some tens of millions.
If this is a cheat, who loses?
They lose up with Auroracoin's unseen if the system collapses, if a injunction is imposed on its operations, or Auroracoin's demand drops for some reason. The price of Bitcoin has been enormously unstable and there is reason to believe that Auroracoin's exchange rates will be more stable.
The central bank may also suffer from some currency gains if Auroracoin replaces banknotes and coins to some extent.
Auroracoin's intention is likely to violate the Foreign Exchange Act and the Central Bank Act. Article 5 The Central Bank Act states: "The Central Bank of Iceland has the exclusive right to issue banknotes and to issue and issue coins or other currencies that can be exchanged in exchange for banknotes or legal coins."
The website auroracoin.org discusses the bank collapse and capital controls and hinted that using Auroracoin solves the problem of the public in Iceland. Money laundering is out of history and capital controls too. They forget to mention Bitcoin's instability because that would be a bad point. But it is not enough to spread Auroracoin to fulfill a promise of a brighter future. It is rather unlikely that shops or people generally wish to accept illegal chips as a payment. The chances that it happens to some extent are small.
Auroracoin will hardly be more than illegal coin mint in this country - but if the public fools to use Auroracoin significantly, it might make a lot of profit for the advocates.
[Change February 7 at 16:55. Got an indication that founders can not create Auroracoin without other users knowing it. If it is correct, the founders' scope for cheating on users is reduced, but it does not disappear. Therefore, if the founders acquire that part of the original pit that the public does not apply, they can grasp significantly on that part.]
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