Regional/Local/Community Currencies Definition
Regional/Local/Community Currencies, also known as complementary or alternative currencies, represent a type of private currency developed and implemented by local businesses, citizens, and organizations within a specific geographical region to stimulate economic activity and social cohesion.
Regional/Local/Community Currencies Key Points
- They are private currencies not issued by a government.
- They support local economic growth by promoting local spending.
- These currencies aim to increase community cohesion.
- Used within a specific geographical region.
What are Regional/Local/Community Currencies?
Regional/Local/Community Currencies are types of currencies that are not issued by a national government but instead by local entities such as businesses, grassroots initiatives or organizations within a defined local or regional area. These currencies are intended to circulate within a closed economy as a tool for promoting local spending and economic growth.
Why do Regional/Local/Community Currencies Exist?
These currencies exist as a response to the need for stimulating local economic activity and fostering social cohesion within communities. They primarily aim to keep spending within the local circuit, support local businesses, and strengthen the bond among community members.
How do Regional/Local/Community Currencies Work?
Community currencies work by staying limited to a specific region and cannot be used elsewhere. They often arrive in the form of paper money or digital formats that businesses within the respective area are obliged or encouraged to accept.
Where are Regional/Local/Community Currencies Used?
These currencies are used within a specific geographical region. Examples include the “Bristol Pound” in the UK, the “Chiemgauer” in Germany, or the “BerkShares” in the Massachusett’s Berkshire region in the USA. They represent an innovative way to bolster local economies and foster stronger communities.
When Can Regional/Local/Community Currencies Be Used?
Regional/Local/Community Currencies can be used anytime within the designated geographical region for transactions between participating businesses and consumers. They serve as a supplement to national currency for local exchanges and can be used in tandem with it.
Who Can Use Regional/Local/Community Currencies?
These currencies can be used by anyone residing within the respective geographical region. Businesses, citizens and organizations use them as an alternative form of currency to circulate wealth within the community. These respondents seek to boost local economic development and foster community cohesion by using these alternative currencies.
