Colu, a Tel Aviv-based technology company, has launched a localized digital currency in the United Kingdom – the Liverpool Pound (LLP), The Telegraph reported.

The startup, known for its work on the Coloured Coins protocol, has already issued two digital currencies in Israel, namely, a digital shekel in Jaffa and another in the Florentine district of Tel Aviv. Its technology has played a pivotal role in the Barbadian digital dollar roll-out and is involved in the Brazilian project to establish the Bitreal.

Colu decided to expand to Liverpool after Independent Liverpool, an organisation that champions small businesses, contacted it for the project. Launched just a month ago, the Liverpool Local Pound already has over 3,000 users.

The company is also going to launch another digital currency in East London soon, which will be pegged to pound sterling similar to the LLP – 1 LLP equaling £1. IBTimes UK reported last November that Colu plans to issue two localised digital currencies in the UK – the Camden Pound and the Liverpool Pound.

“Local currencies are not a new idea, especially in the UK,” said Amos Meiri, CEO of Colu.“The reason they never picked up and became something big is because they were managed by non-profit volunteers, but we are a very ambitious start-up with investors behind us.”

Anyone with a smartphone and the Colu app can use the LLP. Users can top up their digital wallets using their credit cards and perform transactions easily, with immediate transfer of money between accounts. First time users will be credited five free LLPs.

A subscription fee of £25 per month is charged by Colu to merchants. It is also planning to levy a 5% fee on users when they take money out of circulation.

By taking advantage of locals-only offers and discounts, Colu said that consumers and merchants get more for their money if they use the LLP for purchasing goods.

“The incentive for users is that they get more for their money,” said Meiri. “They also get to build connections with the local community.”