Crypto and NFT stamps: Revolutionising philately in the digital age |07 October 2023

Seychelles stamps and First Day Cover (Photo credit: Seychelles Postal Services)

For the occasion of World Post Day, celebrated on October 9 by all designated postal operators in partnership with the Universal Postal Union, Seychelles Postal Services (SPS) takes this opportunity to share one of the many digital projects that it is working on as part of its digital transformation journey.

Since the issuance of the Penny Black, the first pre-paid postage stamp in 1840, many people have taken a keen interest in the enchanting world of stamps. Fondly dubbed as the ‘King of Hobbies’, philately or stamps collecting became one of the world’s most popular hobbies with avid collectors from different corners of society. Through stamps, schoolchildren, unskilled workers, artists, and pensioners all enjoyed something significant in common with royalty and celebrities. John Lennon, Queen Elizabeth II and Amelia Earhart were some of the famous individuals with private stamps collection. While the King of Hobbies remained at the peak of its glory well into the late 90s, the beginning of the 2000s saw the decline in the number of stamps collectors worldwide. With new technology and faster ways of communicating, emails and text messages took preference over traditional mail, reducing the usage of stamps. As younger generations became increasingly preoccupied with their screens and the constant stream of dopamine hits served up by TikTok, Instagram, Facebook and other popular social media platforms, philately gradually lost its popularity and became a niche hobby kept alive by a few enthusiasts.

While technology might have overshadowed the fascinating art of philately, things are slowly turning around for this traditional hobby as it undergoes a remarkable transformation through digital innovation. Non-fungible tokens (NFTs), the blockchain-based digital assets that have taken the art and collectibles world by storm, are now making their mark in the world of philately.

This new innovation is a game-changer for all philatelists and postal services globally. Faroe Islands, Netherlands and Austria are three examples of post offices that have adopted Crypto and NFTs stamps, contributing to this renaissance. Since these stamps can bring additional revenue to postal services, many postal operators are interested in this form of investment and SPS is not an exception. Before going further, to better understand why the Seychelles Postal Services plans to reinvigorate its stamps through this medium, one must firstly understand what is a non-fungible token (NFT) and a Crypto stamp.

Think of NFTs like digital collectibles or unique digital assets. Unlike regular cryptocurrencies like Bitcoin or Ethereum, which are fungible (meaning one unit is interchangeable with another), NFTs are non-fungible, meaning each one is unique and cannot be replaced with something else.

Here is a simple analogy:

Imagine you have a basketball card. This card is unique because it has a specific player's picture, stats, and maybe even a signature. You can trade this card with others, and its value depends on how much people are willing to pay for it.

NFTs work similarly but in the digital world. They are like digital basketball cards or digital artworks, each with its own unique information. People can buy, sell, and trade these digital items, and their value can vary depending on how much someone is willing to pay for that uniqueness. NFTs use blockchain technology to verify and record ownership, making it clear who owns a particular digital item and ensuring its authenticity. This uniqueness and ownership verification make NFTs popular for things like digital art, music, virtual real estate, in-game items and postage stamps.

It is important to note however that when someone purchases an NFT stamp, they are not purchasing an actual postage stamp; what they purchase is the design and like traditional stamps, these can range from different themes. They can be static or animated images, depending on the preference of the postal service. NFT stamps come with several advantages, with its accessibility being one of its most attractive attributes. This is because collectors can browse, purchase, and trade NFT stamps from the comfort of their homes, eliminating the need for physical storage space. Another benefit of NFT stamps is that they transcend geographical boundaries, allowing collectors to connect with enthusiasts from around the world. Blockchain technology ensures the permanent and verifiable ownership of NFT stamps. Therefore, collectors can prove the authenticity of their digital stamps and their place in the ownership history. To make stamp collecting available to a broader audience, NFT stamps can be divided into smaller, tradable fractions. This enables collectors to invest in high-value stamps without having to buy the entire NFT. In the digital world, this method is known as Fractional Ownership.

A crypto stamp on the other hand, is an NFT stamp with a paper twin, meaning when you buy the paper stamp is it linked to a digital version through a bar code found on the paper stamp.

Digital stamps have stunning, artistic designs that pay homage to traditional stamps. However, unlike their traditional counterparts, they have the added advantage of incorporating dynamic elements, animations, and even interactive features, elevating them to the level of digital art. The uniqueness of these designs have opened up new opportunities for digital artists and their work attract collectors to the world of philately. As a matter of fact, NFT stamps have the potential to entice a younger and tech-savvy audience to this dying hobby. This influx of new collectors can help preserve and rejuvenate philately for future generations. Another attractive feature, is that unlike physical stamps, NFT stamps are not susceptible to physical deterioration. Moreover, being digital, they have a significantly lower carbon footprint, making them a more eco-friendly option for collectors.

For the creation of its crypto stamp, SPS has established a partnership with Stampsdaq – a platform that is developing a global NFTs crypto philately blockchain marketplace. Its aim is to unite all postal administrations in a unified digital stamps market. Currently, the design of the artwork of SPS’ first crypto stamp is in process and will be launched to members of the public at the appropriate time, whereby it will be sold on Stampsdaq’ s platform, which will also be accessible via SPS’s new website which is currently under construction. The move towards this cutting-edge technology has been enabled by partnerships between SPS, the Ministry of Finance, National Planning and Trade and the Financial Services Authority as all these entities work together to ensure a safe regulatory environment for digital trade.

Through its Crypto and NFT stamps, SPS aims to breathe new life into philately at the local level by reinvigorating our unique stamps that depict the natural beauty and culture of our country. It will also open the opportunity for Seychellois to explore and invest in Crypto and NFT stamps that is uniquely Seychelles.

Whether someone is a seasoned stamp collector looking to explore the digital frontier or a newcomer intrigued by the idea of owning a piece of digital philatelic history, Crypto and NFT stamps offer a unique and exciting way to engage with the world of stamps. As the technology continues to evolve, these stamps are poised to redefine the future of stamps collecting, preserving its legacy while embracing the digital possibilities of the modern world.

Contributed