Local Currency News: Understanding the Benefits of Local Currencies

Local currencies have been gaining popularity in recent years, and for good reason. They can help to boost local economies by keeping money within the community, reducing reliance on external currencies and financial systems.

By using local currencies, merchants and consumers can develop stronger relationships, leading to increased trust and a more vibrant community. This can also lead to more jobs and business opportunities.

Local currencies can be designed to promote specific community goals, such as sustainability or social welfare. For example, the Bristol Pound in the UK is linked to the city's local businesses and organizations.

The Totnes Pound in the UK has been successful in encouraging local trade and reducing the town's carbon footprint.

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BerkShares are a local currency that was first introduced in 2006 in Western Massachusetts. They were inspired by earlier experiments with community currencies, such as the cordwood-backed currency of the 1980s.

There are over 140,000 BerkShares in circulation, all backed by reserves in local banks. This means that consumers can exchange U.S. dollars for BerkShares at a one-to-one rate by visiting a participating bank branch.

BerkShares function similar to regular cash, with 10 BerkShares equal to $10. They can be used to make purchases at participating businesses, keeping the money circulating within the local economy.

More than 10 million BerkShares have circulated throughout the local economy since 2006, according to the Schumacher Center's 2019 estimate. This has helped to create momentum for local businesses to redirect their spending towards local needs.

Using BerkShares, a local currency, can make a difference in your community. By using BerkShares, you're acknowledging that the business you're supporting is local.

Business owners don't face credit card fees when they accept payment in BerkShares, which can be a cost-effective option. This is because credit card processing fees typically range between 1.5% to 3.5%, which can be a significant cut for small businesses.

The 1.5% exchange fee for BerkShares is a smaller cut than many credit card processing fees. This means that using BerkShares can actually be a more community-minded way to pay.

Using BerkShares can also help build more resilient, locally based supply chains. By choosing to use BerkShares, you're voting with your wallet and showing your support for local businesses.

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Infrastructure plays a crucial role in the success of local currencies.

The Brixton Pound, for example, has invested in local businesses and community projects, creating jobs and stimulating economic growth in the area.

A local currency's infrastructure can include online platforms, ATMs, and exchange offices that make it easy for people to use and accept the currency.

The Bristol Pound, on the other hand, has partnered with local businesses to offer discounts and promotions to customers who use the currency.

This partnership has helped to increase the use of the Bristol Pound and promote local spending.

Local currencies can also be used to fund community projects and initiatives, as seen with the Totnes Pound's community fund.

The Totnes Pound has used its profits to support local projects, such as a community garden and a children's play area.

By investing in local infrastructure, local currencies can have a positive impact on the community and stimulate economic growth.