Compiled by Sarah Lipkis and Amanda Roth (From the Summer 2014 issue "Change Matters" of World Policy Journal)
Alternative currency is a privately developed form of money that is used as a substitute to national currency in designated areas.
It is not regulated by national governments or banks. A familiar example is the e-currency, Bitcoin. However, Bitcoin is neither the only nor the oldest example of alternative money. The Chiemgauer, Brixton pound, Sardex, and the Dam are examples of alternative money currently in use in Germany, England, Italy, and the Netherlands, respectively. The goal with these currencies is to promote the idea of spending locally.
By keeping the currency within the designated area, the local economy is able to prosper regardless of the state of the national economy. This enables communities to establish local markets that are less affected by national trends.
By keeping the currency within the designated area, the local economy is able to prosper regardless of the state of the national economy. This enables communities to establish local markets that are less affected by national trends.
SARDEX (Sardinia, Italy)
E-MONEY, 2006
1,500 BUSINESSES
Businesses and individuals sign up for sardex and are then given interest free loans. To pay back the loans, users must sell and buy goods and services from other sardex users.
BRIXTON POUND (ENGLAND, UK)
PAPER MONEY, 2009
E-MONEY, 2011
250 BUSINESSES ACCEPT THE PAPER,
WHILE 150 ACCEPT E-MONEY
Paper and e-money are used to purchase goods and services.
DAM (NETHERLANDS)
E-MONEY, 2013
170 BUSINESSES
A mutual credit clearing system where everyone starts with a debt of 500 dam and are then encouraged to buy and sell goods and services with other dam users.
CHIEMGAUER (Germany)
PAPER MONEY, 2003
600 BUSINESSES
If the money is not used within three months of printing, it expires. It can be renewed up to seven times, by going to an exchange center and paying 2 percent over face value. This encourages people to spend rather than save money.
(Sources: The Guardian, Brixtonpound.org, Everyday Economics Blog, Italian Post-Crash Economic Society, Sardex.net, IamExpat in the Netherlands, Chiemgauer.info)
No comments:
Post a Comment