Local currencies

What is a local currency? 

It is money issues and managed by a local organisation.  Government may insist on some invlovement as it isn’t a way to avoid GST however essentially it is money organised by the community it serves. 

Local currencies complement conventional money by boosting regional economies, supporting local businesses, and fostering community cohesion. They keep money local, encourage sustainable practices, and empower individuals, promoting economic resilience. These currencies also help those outside the regular banking system. Thousands exist worldwide, demonstrating their positive impact.

Local currencies help keep money circulating within the community, promoting local businesses and reducing reliance on external economic forces. They also foster a sense of community identity and resilience, especially in remote or unbanked areas, such as rural communities in Africa. For these regions, local currencies can provide an essential means of exchange, enabling trade and services where access to traditional banking services is limited.

The benefits of local currencies include:

  • Supporting local businesses by keeping money within the community.
  • Encouraging the circulation of wealth locally, fostering economic resilience.
  • Empowering communities, particularly in under served and rural areas, by providing an accessible means of exchange.
  • Strengthening social ties and community identity through shared participation in the local economy.

A Case study: The Bristol pound

The Bristol Pound was a local currency launched in 2012 with the aim of promoting local spending and reducing the amount of money leaving the local economy. It was the first local currency in the UK to offer both paper and digital forms from the outset, and it even allowed for local taxes to be paid using the currency. The initiative was part of a broader effort to support local businesses, reduce environmental impact, and foster community resilience by keeping money circulating within the city. 
The currency saw some success, particularly in raising awareness about the importance of local economies. At its peak, it was considered the most successful local currency in the UK. However, the Bristol Pound faced significant challenges over time, particularly as more people and businesses moved toward electronic payment methods. The physical notes were largely used as a novelty by tourists rather than becoming a robust local economic tool. This, along with difficulties in raising sufficient funds to sustain and evolve the project, led to the official discontinuation of the Bristol Pound in 2021.

Efforts were made to transition to a new digital initiative called Bristol Pay, which aimed to build on the ideas behind the Bristol Pound but with a more modern and sustainable approach. Unfortunately, despite these efforts, the project could not secure the necessary funding, and Bristol Pay was also discontinued in 2023.

The legacy of the Bristol Pound continues to influence discussions about local economies and alternative financial systems, and it serves as a case study in the challenges and opportunities of local currencies

Previous Post: Timebanking

August 16, 2024 - In Solutions

Next Post: Helen Dew a lifetime of grassroots initiatives

August 18, 2024 - In Stories

Related Posts