Complementary Currency: Building Stronger Communities and Local Economies

Complementary currencies are being used to build stronger communities and local economies. They're a way to promote local trade and reduce reliance on traditional fiat currency.

By using complementary currencies, businesses can attract customers who are looking to support local initiatives. For example, a bakery might accept a local exchange system's tokens in addition to cash.

Complementary currencies can also help to increase economic activity in low-income areas. In a study, a local currency in a Brazilian town led to a 20% increase in local spending.

This approach can foster a sense of community and cooperation among residents. By using a shared currency, people are more likely to support local businesses and initiatives.

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Complementary currency is a medium of exchange created to advance the social or economic goals of a community, group, or organization. It's often used interchangeably with alternative currency, but they differ in their purpose.

Bitcoin has been used to finance journalistic freedom and as a payment method in war-torn areas where traditional banking was unavailable. It's also highly used in remittances, where people work in one country and send money to family in another.

Currency is a medium of exchange that allows us to trade goods and services.

A national currency is the primary means of exchange in an economy.

It's the official currency that's widely accepted and used for everyday transactions.

Bitcoin has been used to finance journalistic freedom and as a payment method in war-torn areas where traditional banking was unavailable.

Some argue that Bitcoin meets the definition of a complementary currency because it addresses social and economic needs, such as facilitating remittances and being accepted by businesses globally.

However, others claim that Bitcoin no longer fits the definition of a complementary currency because its real-world uses have been diminished, with people using it more to advance a wide range of agendas.

Bitcoin is recognized as a medium of exchange in nearly every country, and there are even Bitcoin ATMs worldwide.

But the question remains, does Bitcoin's use as a payment method and its global recognition make it a currency in its own right?

Complementary currencies come in many forms, each designed to serve a specific purpose or community. Local currencies, for instance, are used in specific regions, like the Brixton pound in the UK or the Calgary dollar in Canada.

A local currency is a type of complementary currency that is used within a specific geographic area. The Lewes pound, for example, was used in Lewes, UK from 2008 to present. These currencies are often designed to promote local trade and economic activity.

Sectoral currencies, on the other hand, are used within a specific sector or industry. The Fureai kippu, used in Japan in 1995, is an example of a sectoral currency used in elderly care. This type of currency is designed to facilitate trade and exchange within a specific sector.

Community currencies are used by a group of people with a shared interest or goal. The Spesmilo, used in Esperantujo from 1907 to the First World War, is an example of a community currency. This type of currency is often used to promote cooperation and mutual support within a community.

Here are some examples of complementary currencies:

Complementary currencies help keep wealth circulating locally since their use is confined by design to particular towns or regions.

In Sardinia, for example, the Sardex currency circulated among 1,477 entities in 2013 and 2014, demonstrating its potential for local circulation.

Complementary currencies support local small businesses, which then recirculate that money within the community.

This allows for local employment in local projects at any time, providing economic stability and opportunities.

An enhanced sense of shared community is a beneficial side-effect of using complementary currencies.

In situations where the complementary currency can be obtained without having to buy it with national currency, such as when it is granted or earned, it provides buying power to segments of the community that have low levels of national currency.

Examples of complementary currencies can be found in various parts of the world. The most famous example is BerkShares, a local currency used in the Berkshire region of Massachusetts.

BerkShares are a community currency, a sub-category within complementary currencies, aimed at supporting a local or regional economy. Over 300 businesses now accept BerkShares as a form of payment.

In Europe, the eusko is another successful example of a micro-currency. Launched in 2013, it has reached the equivalent of €1 million in circulation and is accepted by 17 municipal governments and 820 local shops and businesses.

The eusko's success has caught the attention of other European communities, with the Institute of the Circular Economy of Wales and the Belgian federation of alternative finance showing interest in replicating its model.

The Fureai Kippu system is a type of complementary currency that rewards individuals for helping older adults.

It was first introduced in Japan in 1995 to address the country's aging population.

Participants earn an electronic currency, or credit, for every hour of labor they spend helping an older adult.

This credit is then held in an online clearinghouse.

Hundreds of institutions in Japan now accept the credits, and the system has spread to other countries in Asia with aging populations.

The Fureai Kippu system is a great example of how complementary currencies can be used to support community efforts and address specific needs.

Examples of complementary currencies are popping up all over the world. BerkShares, a local currency, is a great example of this. It's only accepted in the Berkshire region of Massachusetts and has over 300 businesses that accept it as payment.

The concept of community currencies, a sub-category within complementary currencies, is also fascinating. Community currencies are explicitly aimed at supporting a local or regional economy and its goals. BerkShares is a great example of this.

One of the most successful examples of a micro-currency is the eusko, launched in the French-Basque region in 2013. It reached the equivalent of €1 million in circulation by October 2018, making it the most successful of such monetary experiments in Europe.

The eusko has been widely adopted, with 17 municipal governments and 820 local shops, businesses, and associations accepting it as legal tender. Two to three new eusko accounts are being opened daily.

Here's a list of some other notable complementary currencies:

Complementary currencies are designed to address specific issues, and most have multiple purposes. They can be useful for communities without access to financial capital and for adjusting spending behavior.

Complementary currencies aim to increase financial stability, reduce carbon emissions, and encourage localisation of trade and relationships. They can also promote local businesses and maintain purchasing power.

Some of the specific aims of complementary currencies include:

Complementary currencies are not a replacement for a nation's fiat or national currency. They are designed to serve specific social or local economic goals.

Complementary currencies may be limited in terms of usage, and their value can be prone to volatility and inflation. This is a key distinction from national currencies.

A complementary currency is not a true alternative to a national currency, but rather a tool for achieving specific local economic objectives. It's not a one-size-fits-all solution.

Examples of complementary currencies can be found in historical and contemporary use, as explored in the document "Complementary Currencies in Use, 2018." These examples illustrate the diverse applications of complementary currencies.

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The legitimacy of complementary currencies is affirmed by excerpts from U.S. Federal Reserve publications. This recognition highlights the potential benefits of complementary currencies in specific contexts.

Complementary currencies can play a crucial role in addressing issues like underfunded schools and unrepaired roads, as seen in communities struggling with a lack of national currency. They can help usher in a new era of prosperity and local empowerment.

Complementary currencies have been designed to address specific issues, such as increasing financial stability. This is a key aspect of their purpose.

Most complementary currencies have multiple purposes, and 94 out of 150 surveyed systems reported that they were designed to address all reasons, including cooperation, community development, and micro/small/medium enterprise development.

Complementary currencies can be a useful tool for communities that lack access to financial capital. They can also help adjust people's spending behavior.

The aims of complementary currencies can vary widely, but some common goals include resocialisation and emancipation, lifeboat currencies, and reducing carbon emissions by encouraging local trade and relationships.

A survey of complementary currency systems found that many were designed to address multiple issues, including cooperation, community development, and micro/small/medium enterprise development.

Here are some of the specific aims of complementary currencies:

Complementary currencies are designed to work alongside fiat currency to achieve a specific social goal. They're not meant to replace traditional currency, but rather to complement it.

Regional currencies are a great example of complementary currencies, as they aim to keep spending local and support the local community. This can be seen in the "Buy Local First" programs that use consumer-credit systems to incentivize consumers to shop on Main Streets.

Greater cooperation between different types of complementary currencies, such as Time Dollar systems and consumer credit systems, can lead to shared administrative capabilities, outreach, and technology. This can help create more efficient and effective local economies.

To create a thriving local economy, communities need to issue local currencies in the form of no-interest loans to finance businesses producing goods that are currently imported. This requires creativity and innovation to find solutions to this complex problem.

Key takeaways from the conference on complementary currencies include:

Complementary currencies are a fascinating topic. They're a type of currency that's not issued by a government, but rather by a community or organization.

The Brixton pound, for example, is a local currency that was introduced in the UK in 2009 and is still in use today. It's part of a movement to promote local trade and community development.

The Bristol pound, on the other hand, was a local currency that was active in the UK from 2009 to 2021. It's interesting to see how different communities approach complementary currencies.

Some complementary currencies are designed to promote a specific cause or goal. The Calgary dollar, for instance, was introduced in Canada in 1995 to promote local trade and community development.

Other examples of complementary currencies include the Chiemgauer, which is a local currency used in Germany, and the Detroit Community Scrip, which is used in the US.

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The list of complementary currencies is quite extensive, with examples from around the world. Here's a list of some of the most notable ones: