Related Stories
The Towns That Invent Their Own Money
Key Excerpts from Article on Website of Reasons to be Cheerful
TOP (L to R): ECOs (Catalonia, Spain), Calgary Dollars (Canada), BerkShares (United States)
CENTER: Bangla-Pesa (Kenya)
BOTTOM (L to R): Baltimore BNotes (Baltimore, MD), Sarafu-Credits (Kenya), K'Mali (South Africa).
Photo: Schumacher Center for A New Economics
Posted: April 7th, 2025
https://reasonstobecheerful.world/towns-invent-community-cur...
Community currencies — alternative forms of money sometimes also referred to as local or regional currencies — are as diverse as the communities they serve, from grassroots time-banking and mutual credit schemes to blockchain-based Community Inclusion Currencies. Local currencies were common until the 19th century, when the newly emerging nation states transitioned to a centralized system of government-issued money as a way of consolidating their power and stabilizing the economy. Far from being a neutral system of exchange, a currency is a tool to achieve certain goals. Inequality and unsustainability are baked into our monetary system, which is based on debt and interest with practically all the money ... being created by private banks when issuing loans. Well-designed community currencies eliminate two main sources of financial inequality: money’s perceived inherent value and the interest rates, which both incentivize people to hoard their money. Like the pipes that bring water to your house, money is the conduit that gives you access to goods and services. The value of money is created in the transaction. In 2015 it was estimated that almost 400 of them are active in Spain alone, and across Africa blockchain-backed systems, like the Sarafu in Kenya, help underserved communities do business without conventional money. Elsewhere, local currencies like the Brixton pound in the U.K. or BerkShares in Massachusetts are a way to keep money in the community, buffering it against the pressures of a globalized economy.
Note: Explore more positive stories like this on reimagining the economy.
Related Stories
Top Inspiring News Articles
Top Inspiring News Articles from Years Past
