Local currency
Encyclopedia
In economics
, a local currency, in its common usage, is a currency
not backed by a national government (and not necessarily legal tender
), and intended to trade only in a small area. As a tool of fiscal localism
, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering. These currencies are also referred to as community currency, and are a form of alternative currency
or complementary currency
. They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse.
provides the economic prototype of local currencies. In the modern era, the most recognizable local currencies were company scrip
issued in certain industries to pay workers, and token coin
s issued by some businesses to encourage consumer loyalty. In the 19th and early 20th centuries, the failures of national banks during crises often created acute demands for cash, which were met by businesses creating emergency currency. These scrips were usually issued with the intention of redemption in national currency at some later date.
A few such currencies, however, developed into monetary systems in their own right. The idea of using free banking to produce an alternative, community-level currency dates back at least as far as the German Credit Unions in the 1800s. The oldest local currencies known to be in continuous use are the WIR in Switzerland, and the Labor Banks in Japan.
Complementary currency
is a hypernym
to local currency, but the terms are often used as synonyms. The term "local currency" does not refer to national currency that happens to be used only in a local area.
Advocates of local currency, such as Jane Jacobs
, argue that this enables an economically cool, yet depressed region to pull itself up by giving the people living there a medium of exchange they can use to exchange services and locally-produced goods. In a broader sense, this is the original purpose of all money
. Local currencies also tend to operate in relatively small geographic regions and encourage recycling and reducing the amount of carbon emissions from the transportation and manufacture of goods. As a result, they are part of the economic strategy of many green and sustainable-living groups such as the Green Party of England and Wales
.
Local currencies can come into being also when there is economic turmoil involving the national currency. For example, during the Argentine economic crisis of 2002, small denomination, interest-free provincial bond IOU
s issued by local governments quickly took on some of the characteristics of local currencies successfully.
Opponents of this concept argue that local currency creates a barrier which can interfere with economies of scale and comparative advantage
, and that in some cases they can serve, like traditional national currencies, as a means of tax evasion
.
Use of local currencies to boost local economies is strongly advocated by the Netherlands
-based Instrodi
Institute.
experiment that was conducted from July 1932 to November 1933 is a classic example of the potential efficacy of local currencies. Wörgl, a small town in Austria with 4000 inhabitants, introduced a local scrip during the Great Depression. By 1932, unemployment in Wörgl had risen to 30%. The local government had amassed debts of 1.3 million Austrian schilling
s (AS) against cash reserves of 40,000 AS. Local construction and civic maintenance had come to a standstill. On the initiative of the town's mayor, Michael Unterguggenberger, the local government printed 32,000 in labor certificates which carried a negative 1% monthly interest rate and could be converted into schillings at 98% of face value. An equivalent amount in schillings, deposited in the local bank as cover for the certificates in case of mass redemption, earned interest for the government. The certificates circulated so rapidly that only 12,000 were ever actually put into circulation. According to reports by the mayor and economists of the day who studied the experiment, the scrip was readily accepted by local merchants and the local population. It used the scrip to carry out 100,000 AS in public works projects involving construction and repair of roads, bridges, tanks, drainage systems, factories, and buildings. The scrip was also accepted as legal tender for payment of local taxes. In the one year the currency was in circulation, it circulated 13 times faster than the official shilling and served as a catalyst to the local economy. The heavy arrears in local tax collection declined dramatically. Local government revenue rose from 2,400 AS in 1931 to 20,400 in 1932. Unemployment was eliminated, while it remained very high throughout the rest of the country. No increase in prices was observed. Based on the dramatic success of the Wörgl experiment, several other communities introduced similar scrips.
In spite of the tangible benefits of the program, it met with stiff opposition from the regional socialist party and from the Austrian central bank, which opposed the local currency as an infringement on its powers over the currency. As a result, the program was suspended, unemployment rose, and the local economy soon degenerated to the level of other communities in the country.
Other well-documented historical examples include:
and mercantilism
:
it establishes an internal trade barrier
, as the local currency cannot be used externally, and allows the area to have a different (presumably lower) interest rate
than the national currency's — in the Wörgl experiment, a negative interest rate, known as demurrage
. Advocacy and criticism of local currencies is based partly on general attitudes towards monetarism and mercantilism, and partly on opinions of the desirability of having internal variations in currency and trade.
Advocates of local currency in effect argue that, in certain circumstances, an entire country is not an optimum currency area
, and that various regions should have different currencies. Compare with the Eurozone
in Europe.
Society utilizes only a small portion of its resources and opportunities. Almost everyone has underutilized knowledge, skills and time that can be engaged productively. Most manufacturers and services have underutilized machinery or capacity. Complementary currencies are a creative means to enhance this untapped social potential.
Since 2002 there has been an upsurge in local currency experiments particularly payment voucher-based systems that are exchangeable with the national currency. Such currencies aim to raise the resilience of local economies by encouraging re-localisation of buying and food production. The drive for this change has arisen from a range of community-based initiatives and social movements. The Transition Towns
movement originating in the UK has utilised local currencies for re-localisation in the face of energy descent from peak oil
and climate change
. Other drives include movements against Clone town
and Big-box trends.
Previously, one of the most prominent systems was LETS, local exchange trading system, a trading network supported by its own internal currency. Originally started in Vancouver, Canada, there are presently more than 30 LETS systems operating in Canada and over 400 in the United Kingdom. Australia, France, New Zealand, and Switzerland have similar systems. Time Dollars, Ithaca Hours
, and PEN exchange are among the most successful systems in the USA.
Economics
Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek from + , hence "rules of the house"...
, a local currency, in its common usage, is a currency
Currency
In economics, currency refers to a generally accepted medium of exchange. These are usually the coins and banknotes of a particular government, which comprise the physical aspects of a nation's money supply...
not backed by a national government (and not necessarily legal tender
Legal tender
Legal tender is a medium of payment allowed by law or recognized by a legal system to be valid for meeting a financial obligation. Paper currency is a common form of legal tender in many countries....
), and intended to trade only in a small area. As a tool of fiscal localism
Fiscal localism
Fiscal localism comprises institutions of localized monetary exchange. Sometimes considered a backlash against global capitalism, fiscal localism affords voluntary, market structures that help communities trade more efficiently within their communities and regions.-Fiscal localism:"Buy local" is...
, local moneys can raise awareness of the state of the local economy, especially among those who may be unfamiliar or uncomfortable with traditional bartering. These currencies are also referred to as community currency, and are a form of alternative currency
Alternative currency
Alternative currency is a term that refers to any currency used as an alternative to the dominant national or multinational currency systems...
or complementary currency
Complementary currency
Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
. They encompass a wide range of forms, both physically and financially, and often are associated with a particular economic discourse.
History
Free bankingFree banking
Free banking refers to a monetary arrangement in which banks are subject to no special regulations beyond those applicable to most enterprises, and in which they also are free to issue their own paper currency...
provides the economic prototype of local currencies. In the modern era, the most recognizable local currencies were company scrip
Company scrip
Company scrip is currency issued in certain industries to pay workers. Such scrip can only be exchanged by wage-earners in company stores owned by their employers and often charging inflated prices. In the UK, such systems have been formally outlawed under Truck Acts.In the United States, mining...
issued in certain industries to pay workers, and token coin
Token coin
In the study of numismatics, tokens are coin-like objects used instead of coins. The field of tokens is part of exonumia. Tokens are used in place of coins and either have a denomination shown or implied by size, color or shape...
s issued by some businesses to encourage consumer loyalty. In the 19th and early 20th centuries, the failures of national banks during crises often created acute demands for cash, which were met by businesses creating emergency currency. These scrips were usually issued with the intention of redemption in national currency at some later date.
A few such currencies, however, developed into monetary systems in their own right. The idea of using free banking to produce an alternative, community-level currency dates back at least as far as the German Credit Unions in the 1800s. The oldest local currencies known to be in continuous use are the WIR in Switzerland, and the Labor Banks in Japan.
Complementary currency
Complementary currency
Complementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
is a hypernym
Hypernym
In linguistics, a hyponym is a word or phrase whose semantic field is included within that of another word, its hypernym . In simpler terms, a hyponym shares a type-of relationship with its hypernym...
to local currency, but the terms are often used as synonyms. The term "local currency" does not refer to national currency that happens to be used only in a local area.
Advocates of local currency, such as Jane Jacobs
Jane Jacobs
Jane Jacobs, was an American-Canadian writer and activist with primary interest in communities and urban planning and decay. She is best known for The Death and Life of Great American Cities , a powerful critique of the urban renewal policies of the 1950s in the United States...
, argue that this enables an economically cool, yet depressed region to pull itself up by giving the people living there a medium of exchange they can use to exchange services and locally-produced goods. In a broader sense, this is the original purpose of all money
Money
Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
. Local currencies also tend to operate in relatively small geographic regions and encourage recycling and reducing the amount of carbon emissions from the transportation and manufacture of goods. As a result, they are part of the economic strategy of many green and sustainable-living groups such as the Green Party of England and Wales
Green Party of England and Wales
The Green Party of England and Wales is a political party in England and Wales which follows the traditions of Green politics and maintains a strong commitment to social progressivism. It is the largest Green party in the United Kingdom, containing within it various regional divisions including...
.
Local currencies can come into being also when there is economic turmoil involving the national currency. For example, during the Argentine economic crisis of 2002, small denomination, interest-free provincial bond IOU
IOU (debt)
An IOU is usually an informal document acknowledging debt. An IOU differs from a promissory note in that an IOU is not a negotiable instrument and does not specify repayment terms such as the time of repayment. IOUs usually specify the debtor, the amount owed, and sometimes the creditor...
s issued by local governments quickly took on some of the characteristics of local currencies successfully.
Opponents of this concept argue that local currency creates a barrier which can interfere with economies of scale and comparative advantage
Comparative advantage
In economics, the law of comparative advantage says that two countries will both gain from trade if, in the absence of trade, they have different relative costs for producing the same goods...
, and that in some cases they can serve, like traditional national currencies, as a means of tax evasion
Tax evasion
Tax evasion is the general term for efforts by individuals, corporations, trusts and other entities to evade taxes by illegal means. Tax evasion usually entails taxpayers deliberately misrepresenting or concealing the true state of their affairs to the tax authorities to reduce their tax liability,...
.
Use of local currencies to boost local economies is strongly advocated by the Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
-based Instrodi
Instrodi
Instodi is a branch of the Social Trade Organization in Brazil. STRO is an NGO from the Netherlands....
Institute.
Historical local currencies
The WörglWörgl
Wörgl is a town in Tyrol, Austria, in the Kufstein district. It is 20 km from the state border with Bavaria.-Transport:Wörgl is an important railway junction between the line from Innsbruck to Munich, and the inner-Austrian line to Salzburg...
experiment that was conducted from July 1932 to November 1933 is a classic example of the potential efficacy of local currencies. Wörgl, a small town in Austria with 4000 inhabitants, introduced a local scrip during the Great Depression. By 1932, unemployment in Wörgl had risen to 30%. The local government had amassed debts of 1.3 million Austrian schilling
Austrian schilling
The schilling was the currency of Austria from 1924 to 1938 and from 1945 to 1999, and the circulating currency until 2002. The euro was introduced at a fixed parity of €1 = 13.7603 schilling to replace it...
s (AS) against cash reserves of 40,000 AS. Local construction and civic maintenance had come to a standstill. On the initiative of the town's mayor, Michael Unterguggenberger, the local government printed 32,000 in labor certificates which carried a negative 1% monthly interest rate and could be converted into schillings at 98% of face value. An equivalent amount in schillings, deposited in the local bank as cover for the certificates in case of mass redemption, earned interest for the government. The certificates circulated so rapidly that only 12,000 were ever actually put into circulation. According to reports by the mayor and economists of the day who studied the experiment, the scrip was readily accepted by local merchants and the local population. It used the scrip to carry out 100,000 AS in public works projects involving construction and repair of roads, bridges, tanks, drainage systems, factories, and buildings. The scrip was also accepted as legal tender for payment of local taxes. In the one year the currency was in circulation, it circulated 13 times faster than the official shilling and served as a catalyst to the local economy. The heavy arrears in local tax collection declined dramatically. Local government revenue rose from 2,400 AS in 1931 to 20,400 in 1932. Unemployment was eliminated, while it remained very high throughout the rest of the country. No increase in prices was observed. Based on the dramatic success of the Wörgl experiment, several other communities introduced similar scrips.
In spite of the tangible benefits of the program, it met with stiff opposition from the regional socialist party and from the Austrian central bank, which opposed the local currency as an infringement on its powers over the currency. As a result, the program was suspended, unemployment rose, and the local economy soon degenerated to the level of other communities in the country.
Other well-documented historical examples include:
- Emperor Norton IJoshua A. NortonJoshua Abraham Norton , the self-proclaimed Imperial Majesty Emperor Norton I, was a celebrated citizen of San Francisco, California, who in 1859 proclaimed himself "Emperor of these United States" and subsequently "Protector of Mexico".Born in England, Norton spent most of his early life in South...
's own currency - Prosperity CertificateProsperity certificateIn 1936, the Alberta Social Credit Party-led government of the Province of Alberta, Canada, introduced prosperity certificates in an attempt to alleviate the effects of the Great Depression...
- Wära (Currency)WARAWARA may refer to:* Weighted average return on assets, the collective rates of return on the various types of tangible and intangible assets of a company* WARA , a radio station licensed to New Washington, Indiana, United States...
(Germany, made illegal in October 1931) - Bia Kut ChumAmphoe Kut ChumKut Chum is a district of Yasothon Province in northeastern Thailand.-History:The village of Kut Chum was established in 1912. A minor district Kut Chum was established on August 1, 1961...
, issued in 2000 by a Thai community, since replaced by a barterBarterBarter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
couponCouponIn marketing, a coupon is a ticket or document that can be exchanged for a financial discount or rebate when purchasing a product. Customarily, coupons are issued by manufacturers of consumer packaged goods or by retailers, to be used in retail stores as a part of sales promotions...
called BoonMerit (Buddhism)Merit is a concept in Buddhism. It is that which accumulates as a result of good deeds, acts or thoughts and that carries over to later in life or to a person's next life. Such merit contributes to a person's growth towards liberation. Merit can be gained in a number of ways...
Kut Chum.
Theory
Local currency is based on a local form of monetarismMonetarism
Monetarism is a tendency in economic thought that emphasizes the role of governments in controlling the amount of money in circulation. It is the view within monetary economics that variation in the money supply has major influences on national output in the short run and the price level over...
and mercantilism
Mercantilism
Mercantilism is the economic doctrine in which government control of foreign trade is of paramount importance for ensuring the prosperity and security of the state. In particular, it demands a positive balance of trade. Mercantilism dominated Western European economic policy and discourse from...
:
it establishes an internal trade barrier
Trade barrier
Trade barriers are government-induced restrictions on international trade. The barriers can take many forms, including the following:* Tariffs* Non-tariff barriers to trade** Import licenses** Export licenses** Import quotas** Subsidies...
, as the local currency cannot be used externally, and allows the area to have a different (presumably lower) interest rate
Interest rate
An interest rate is the rate at which interest is paid by a borrower for the use of money that they borrow from a lender. For example, a small company borrows capital from a bank to buy new assets for their business, and in return the lender receives interest at a predetermined interest rate for...
than the national currency's — in the Wörgl experiment, a negative interest rate, known as demurrage
Demurrage (currency)
Demurrage is a cost associated with owning or holding currency over a given period of time. It is sometimes referred to as a carrying cost of money. For commodity money such as gold, demurrage is in practice nothing more than the cost of storing and securing the gold...
. Advocacy and criticism of local currencies is based partly on general attitudes towards monetarism and mercantilism, and partly on opinions of the desirability of having internal variations in currency and trade.
Advocates of local currency in effect argue that, in certain circumstances, an entire country is not an optimum currency area
Optimum currency area
In economics, an optimum currency area , also known as an optimal currency region , is a geographical region in which it would maximize economic efficiency to have the entire region share a single currency. It describes the optimal characteristics for the merger of currencies or the creation of a...
, and that various regions should have different currencies. Compare with the Eurozone
Eurozone
The eurozone , officially called the euro area, is an economic and monetary union of seventeen European Union member states that have adopted the euro as their common currency and sole legal tender...
in Europe.
Benefits
The Wörgl experiment dramatically illustrates some of the common characteristics and major benefits of local currencies.- Local currencies tend to circulate much more rapidly than national currencies. The same amount of currency in circulation is employed more times and results in far greater overall economic activity. It produces greater benefit per unit. The higher velocity of money is a result of the negative interest rate which encourages people to spend the money more quickly.
- Local currencies enable the community to more fully utilize its existing productive resources, especially unemployed labor, which has a catalytic effect on the rest of the local economy. They are based on the premise that the community is not fully utilizing its productive capacities, because of a lack of local purchasing power. The alternative currency is utilized to increase demand, resulting in a greater exploitation of productive resources. So long as the local economy is functioning at less than full capacity, the introduction of local currency need not be inflationary, even when it results in a significant increase in total money supply and total economic activity.
- Since local currencies are only accepted within the community, their usage encourages the purchase of locally-produced and locally-available goods and services. Thus, for any given level of economic activity, more of the benefit accrues to the local community and less drains out to other parts of the country or the world. For instance, construction work undertaken with local currencies employs local labor and utilizes as far as possible local materials. The enhanced local effect becomes an incentive for the local population to accept and utilize the scrips.
- Some forms of complementary currency can promote fuller utilization of resources over a much wider geographic area and help bridge the barriers imposed by distance. The Fureai kippuFureai kippuFureai kippu is a Japanese sectoral currency created in 1995 by the Sawayaka Welfare Foundation so that people could earn credits helping seniors in their community....
system in Japan issues credits in exchange for assistance to senior citizens. Family members living far from their parents can earn credits by offering assistance to the elderly in their local community. The credits can then be transferred to their parents and redeemed by them for local assistance. Airline frequent flyer miles are a form of complementary currency that promotes customer-loyalty in exchange for free travel. The airlines offer most of the coupons for seats on less heavily sold flights where some seats normally go empty, thus providing a benefit to customers at relatively low cost to the airline. - While most of these currencies are restricted to a small geographic area or a country, through the Internet electronic forms of complementary currency can be used to stimulate transactions on a global basis. In China, Tencent's QQ coins are a virtual form of currency that has gained wide circulation. QQ coins can be purchased for Renminbi and used to purchase virtual products and services such as ringtones and on-line video game time. They are also obtainable through on-line exchange for goods and services at about twice the Renminbi price, by which additional 'money' is being directly created. Though virtual currencies are not 'local' in the tradition sense, they do cater to the specific needs of a particular community, a virtual community. Once in circulation, they add to the total effective purchasing power of the on-line population as in the case of local currencies. The Chinese government has begun to tax the coins as they are exchanged from virtual currency to actual hard currency.
Society utilizes only a small portion of its resources and opportunities. Almost everyone has underutilized knowledge, skills and time that can be engaged productively. Most manufacturers and services have underutilized machinery or capacity. Complementary currencies are a creative means to enhance this untapped social potential.
Difficulties and criticisms
Local currencies and the Transition Towns movement in the UK have received criticism for a failure to address the needs of the wider population, especially lower socio-economic groups. Such local currency initiatives have been more widely criticized in light of limited success stimulating new spending in local economies and as an unrealistic strategy to reduce carbon emissions. Successful Local Currencies such as the Wörgl experiment attract hostility from the Central Governments, as they reduce the bureaucracy's control over an important power centre.Modern local currencies
There has been a tremendous surge in the use of local currencies over the past two decades. Today there are over 2,500 different local currency systems operating in countries throughout the world.Since 2002 there has been an upsurge in local currency experiments particularly payment voucher-based systems that are exchangeable with the national currency. Such currencies aim to raise the resilience of local economies by encouraging re-localisation of buying and food production. The drive for this change has arisen from a range of community-based initiatives and social movements. The Transition Towns
Transition Towns
Transition Towns is a grassroots network of communities that are working to build resilience in response to peak oil, climate destruction, and economic instability...
movement originating in the UK has utilised local currencies for re-localisation in the face of energy descent from peak oil
Peak oil
Peak oil is the point in time when the maximum rate of global petroleum extraction is reached, after which the rate of production enters terminal decline. This concept is based on the observed production rates of individual oil wells, projected reserves and the combined production rate of a field...
and climate change
Climate change
Climate change is a significant and lasting change in the statistical distribution of weather patterns over periods ranging from decades to millions of years. It may be a change in average weather conditions or the distribution of events around that average...
. Other drives include movements against Clone town
Clone town
Clone town is a global term for a town where the High Street or other major shopping areas are significantly dominated by Chain stores. The term was coined by the New Economics Foundation , a British think tank, in their 2004 report on "Clone Town Britain".A survey conducted by NEF in 2005...
and Big-box trends.
Previously, one of the most prominent systems was LETS, local exchange trading system, a trading network supported by its own internal currency. Originally started in Vancouver, Canada, there are presently more than 30 LETS systems operating in Canada and over 400 in the United Kingdom. Australia, France, New Zealand, and Switzerland have similar systems. Time Dollars, Ithaca Hours
Ithaca Hours
The Ithaca HOUR is a local currency used in Ithaca, New York and is the oldest and largest local currency system in the United States that is still operating. It has inspired other similar systems in Madison, Wisconsin; Corvallis, Oregon; and a proposed system in the Lehigh Valley, Pennsylvania...
, and PEN exchange are among the most successful systems in the USA.
- Worldwide Database of Complementary Currency Systems
- Gallery of Images and Samples of Notes from Complementary Currency Systems
- Africa
- Kenya
- South Africa
- Community Exchange SystemCommunity Exchange SystemThe Community Exchange System is an Internet-based trading network which allows participants to buy and sell goods and services without using a national currency...
(CES) - OraOra (currency)The ora is the currency of Orania. It was first issued in 2004 to provide an internal currency for Orania as part of their quest for self-determination. The currency is not recognised anywhere outside Orania itself, and is not sanctioned by the South African Reserve Bank.It is printed in...
- Community Exchange System
- Australasia
- Australia
- The Maleny "Bunya"
- Baroon Dollar
- The Maia Maia Project
- The Fremantle "Share"
- South East Metro (Perth) Doodad
- Swan Hills LETsystem
- Armadale-Thornlie LETSystem
- Australia
- South America
- Argentina
- ArgentinoArgentine argentino-Gold currency:The Argentino was an Argentine currency equal to 5 pesos oro sellado.The 1/2 argentino coin was issued in 1881 and 1884 and it weighs 4.0322 grams. The argentino coin was issued from 1881 to 1896 and it weighs 8.0645 grams...
- CréditoCréditoThe Crédito was a local currency started on 1 May 1995 in Bernal, province of Buenos Aires, Argentina, on a garage sale, which was the first of many neighbourhood barter markets that emerged in Argentina during the economic crisis....
- LECOPLECOPThe LECOP was a bond issued by Argentine national government. LECOP , stands for Letra de Cancelación de Obligaciones Provinciales ....
- PatacónPatacón (bond)The Patacón was a bond issued by the government of the province of Buenos Aires, Argentina, during 2001...
- Argentino
- Brazil
- Banco PalmasBanco PalmasBanco Palmas is a Brazilian community bank founded in 1998 in Conjunto Palmeira, a neighborhood of 32,000 inhabitants located in the suburbs of Fortaleza - Ceará, Brazil operating under the principle of the "Solidarity Socio-Economy."...
- Curitiba Bonus
- Sabre
- Yscambau (Ymaginários da Confederação Ystilingue - Belo Horizonte, MG)
- Banco Palmas
- Spanish-Speaking Latin America
- Argentina
- North America
- Asia
- Japan
- Fureai kippuFureai kippuFureai kippu is a Japanese sectoral currency created in 1995 by the Sawayaka Welfare Foundation so that people could earn credits helping seniors in their community....
- Eco-MoneyEco-MoneyEco-Money is the name of many Japanese community currencies, used to connect neighbours in obtaining the goods and services they need.Eco-money may also be used to describe forms of alternative currency and complementary currency that encourage ecological and socially responsible actions in other...
- WAT System
- Fureai kippu
- Hong Kong
- COME
- Indonesia
- Yogyakarta System, Indonesia
- Malaysia
- Kedahan dinar
- Kelantanese dinarKelantanese dinarThe Kelantanese dinar is a currency issued by the Government of the Malaysian state of Kelantan, which purportedly is in conformance with the concept of the Islamic gold dinar. The Kelantanese dinar is available in the form of coins of several denominations...
- Japan
- Europe
- Belgium
- Lietaer
- Denmark
- Løn
- ArtmoneyArtmoneyArtmoney from BIAM is an international art project established by the Danish artists Lars Kræmmer and Flemming Vincent in 1998. Artmoney items are original works of art the size of big bank notes...
- France
- SEL - Système d’Echange Local
- SOL ProjectSOL ProjectThe SOL Project is an innovative French complementary currency designed to promote a "solidarity economy". The project is being financed by the European Commission and pilot tested in Nord-Pas-de-Calais, Ile-de-France and Brittany...
- Troc de Services
- AbeilleAbeille (local currency)Abeille is the name of a community currency started in 2010 in Villeneuve-sur-Lot, France. It is named after the French word for bee. The Abeille program is intended to promote local commerce...
- OccitanOccitan (local currency)Occitan is the name of a community currency started in 2010 in Pézenas, Occitania, France. It is named after the ethnic name Occitan.The Occitan program is intended to promote local commerce...
- Germany
- Berliner
- ChiemgauerChiemgauerChiemgauer is the name of a regional local currency started in 2003 in Prien am Chiemsee, Bavaria, Germany. It is named after the Chiemgau, a region around the Chiemsee. The Chiemgauer program is intended to promote local commerce...
- Joytopia
- Tauschring
- UrstromtalerUrstromtalerThe Urstromtaler is a community currency being used in the landlocked states Brandenburg and Saxony-Anhalt side by side with the euro. It equates one-to-one with euro in value and is accepted by several local shops and businesses...
- Zschopautaler
- Palzer
- Nahgold
- Hallertauler
- Kirschblute
- Landmark
- KannWas
- Sterntaler
- Greece
- Netherlands
- Gelre
- RAAMRAAMRAAM, or Raam is a bearer bond and local currency issued by Stichting Maharishi Global Financing Research , a charitable foundation based in MERU, Holland. It is also the "global development currency" of the Global Country of World Peace...
- Spain
- Axarco (in AxarquíaAxarquíaAxarquía is a comarca of Andalusia, southern Spain. It is the wedge-shaped area east of Málaga. Its name is possibly traced back to Arabic الشرقية ....
, Málaga)
- Axarco (in Axarquía
- Switzerland
- WIR
- United Kingdom
- Approximately 400 local exchange trading systems (LETS)
- Approximately 75 time banks
- Calderdale Green Currency
- Totnes poundTotnes poundThe Totnes pound is an alternative local currency, intended to support the local economy of Totnes, a town in Devon, UK.The initiative is part of the Transition Towns concept, of which Totnes is a pioneer...
- Lewes poundLewes PoundThe Lewes Pound is a local currency in use in the town of Lewes, East Sussex. Inspired by the Totnes pound and BerkShare, the currency was introduced with the blessing of the town council in September 2008 by Transition Town Lewes - a community response to the challenges of climate change and peak...
- Brixton pound
- Stroud PoundStroud PoundThe Stroud Pound is a local currency in use in Stroud, Gloucestershire. Unveiled on 12 September 2009, the scheme is the third local currency scheme introduced in England in recent years after the Totnes Pound and the Lewes Pound.-History:...
- Italy
- Banca del Tempo
- EcoAspromonte
- Ecoroma
- REL Rete di Economia Locale
- SCEC
- Simec
- Sistema di Reciprocità Indiretta
- Latvia
- Pilsetas Nauda
- Lithuania
- Litas
- Russia
- Billex (credit system based on gold bills, Tomsk)
- Belgium
- International
- Community Exchange SystemCommunity Exchange SystemThe Community Exchange System is an Internet-based trading network which allows participants to buy and sell goods and services without using a national currency...
(CES)
- Community Exchange System
- Unclassified
- VenVen (currency)Ven is a global virtual currency used by members of a social network service Hub Culture to buy, share and trade knowledge, goods and services globally. It can be spent at any Hub Culture Pavilion or used for micropayments on the Internet at large. The value of Ven is determined on the financial...
by Hub CultureHub CultureHub Culture is a social network service that operates the global digital currency Ven, and according to its website, is "the first to merge online and physical world environments." It was founded in November 2002. The Hub Culture group of companies is privately held with offices in Bermuda, Geneva,... - Flash Cash
- Green dollar
- Interdependent Occupational Unit
- Interser
- Ndajem-Wecco
- RGT - Red Global del Trueque
- ROCS - Robust Complementary Community Currency System
- RERS - Réseaux d'Echange Réciproque de Savoirs
- Rumihuaico
- Salta Creditos
- Systèmes d’Echanges Communitares
- Thay Gerh
- Tianguis Tlaloc
- Toctiuco
- Tontines
- Eco-moneyEco-MoneyEco-Money is the name of many Japanese community currencies, used to connect neighbours in obtaining the goods and services they need.Eco-money may also be used to describe forms of alternative currency and complementary currency that encourage ecological and socially responsible actions in other...
- Ven
See also
- BitcoinBitcoinBitcoin is a decentralized, peer-to-peer network over which users make transactions that are tracked and verified through this network. The word Bitcoin also refers to the digital currency implemented as the currency medium for user transactions over this network...
- Fiscal localismFiscal localismFiscal localism comprises institutions of localized monetary exchange. Sometimes considered a backlash against global capitalism, fiscal localism affords voluntary, market structures that help communities trade more efficiently within their communities and regions.-Fiscal localism:"Buy local" is...
- BarterBarterBarter is a method of exchange by which goods or services are directly exchanged for other goods or services without using a medium of exchange, such as money. It is usually bilateral, but may be multilateral, and usually exists parallel to monetary systems in most developed countries, though to a...
- Buy local
- Informal sector (of the economy)
- Local exchange trading system
- JAK members bankJAK members bankThe JAK Members Bank, or JAK Medlemsbank, is a cooperative, member-owned financial institution based in Skövde, Sweden. JAK is an acronym for Jord Arbete Kapital in Swedish or Land Labour Capital....
A Swedish interest-free bank - Ripple monetary systemRipple monetary systemRipple is an open-source software project for developing and implementing a protocol for an open decentralized payment network. In its developed form , the Ripple network would be a peer-to-peer distributed social network service with a monetary honour system based on trust that already exists...
- Complementary currencyComplementary currencyComplementary currency is a currency meant to be used as a complement to another currency, typically a national currency. Complementary currency is sometimes referred to as complementary community currency or as community currency...
- List of economics topics
- MoneyMoneyMoney is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given country or socio-economic context. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past,...
- Private currencyPrivate currencyA private currency is a currency issued by a private organization. It is often contrasted with fiat currency issued by governments or central banks. In many countries, the issue of private paper currencies is severely restricted by law....
- FreigeldFreigeldIn the theory of Freiwirtschaft, Freigeld is a monetary unit proposed by Silvio Gesell.- Properties :Freigeld has several special properties:...
- Time-based currencyTime-based currencyIn economics, a time-based currency is an alternative currency where the unit of exchange is the man-hour.Some time-based currencies value everyone’s contributions equally. One hour equals one service credit...
- Time BankingTime BankingTime banking is a pattern of reciprocal service exchange that uses units of time as currency. It is an example of an alternative monetary system. A time bank, also known as a service exchange, is a community that practices time banking...
- EcoCommunalism
External links
- Resources for rebuilding local businesses and countering mega-retailers
- New Economics Foundation
- Baroon Dollar An Australian local currency system.
- Barter and Trade Software Web service for independent trade networks.
- Kroonos.com Online social networking and time bank
- E. F. Schumacher Society large collection of information on local economies including local currencies
- History of Barter and Local Currencies large collection of information about the history of barter and local currencies
- Calderdale Green Currency 2000-2003
- Regional currencies in Germany - local competition for the euro? Deutsche Bundesbank (ed.)
- open money
- Open Transactions open source software
- LETS
- Community Exchange System (CES) global complementary currency system
- Community Currency Resources
- Community Currency
- ccPedia (a wiki of related topics)
- Complementary Community Currency Systems
- Alternative Money Systems
- Local Currency Directory for USA & Canada
- ccSyndicator Collaborative IT Committee for Complementary Currencies
- Social Trade Organization
- Margrit Kennedy
- Network of German local currencies
- Online Laboratory on Complementary Currencies JAPAN
- Parallel Currency Systems in Asia
- Complementary Currency Resource Center
- Transforming Money: From Debt to Empowerment by Susmita Barua from Buddhist perspective
- Yootles A complementary currency being developed at Yahoo!
- Ithaca Hours An example of a local currency system functioning in the US.
- Ithaca Hours HOUR founder's site consulting with new currencies.
- Bank of International Art Money A global alternative money based on currency created by artists.
- REDI-the Regional Economic Development Initiative A local currency system being developed for Colorado.
- Infography about Community Currencies
- Crom Alternative Exchange Association
- In We We Trust: The Prospect Of Local Currencies
- Cyclos, Open Source Complementary Currency Software
- Cclite, Open Source Currency Software in Perl/Mysql
- Community Currency Magazine
- The Plenty A local currency revitalized by the publication of Small is Possible by Lyle EstillLyle EstillLyle Estill is the author of Small is Possible; life in a local economy, and Biodiesel Power; the passion, the people, and the politics of the next renewable fuel....
- From Stalwart To Skeptic, Germany Rethinks EU Role on the development of microcurrencies in Germany.
- Fuzzy Local Currency Based on Social Network Analysis for Promoting Community Businesses.