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Complementary currency

January 01, 1970

A complementary currency is a currency or medium of exchange that is not necessarily a national currency, but that is thought of as supplementing or complementing national currencies.[1]: 3 [2]: 2  Complementary currencies are usually not legal tender and their use is based on agreement between the parties exchanging the currency. According to Jérôme Blanc of Laboratoire d'Économie de la Firme et des Institutions, complementary currencies aim to protect, stimulate or orientate the economy.[3]: 7  They may also be used to advance particular social, environmental, or political goals.[4]: 4 

When speaking about complementary currencies, a number of overlapping and often interchangeable terms are in use: local or community currencies are complementary currencies used within a locality or other form of community (such as business-based or online communities); regional currencies are similar to local currencies, but are used within a larger geographical region; and sectoral currencies are complementary currencies used within a single economic sector, such as education or health care. Many private currencies are complementary currencies issued by private businesses or organizations. Other terms include alternative currency, auxiliary currency, and microcurrency. Mutual credit is a form of alternative currency, and thus any form of lending that does not go through the banking system can be considered a form of alternative currency. Barters are another type of alternative currency. These are actually exchange systems, which trade only items, without the use of any currency whatsoever. Finally, LETS is a special form of barter that trades points for items. One point stands for one worker-hour of work, and is thus a time-based currency.

Purposes edit

Current complementary currencies have often been designed intentionally to address specific issues, for example to increase financial stability.[5] Most complementary currencies have multiple purposes and/or are intended to address multiple issues. They can be useful for communities that do not have access to financial capital, and for adjusting peoples' spending behavior.[6] The 2006 Annual Report of the Worldwide Database of Complementary Currency Systems presented a survey of 150 complementary currency systems in which 94 respondents said that "all reasons" were selected, among cooperation, micro/small/medium enterprise development, activating the local market, reducing the need for national currency, and community development.[7]

Aims may include:

  • resocialisation and emancipation
  • lifeboat currencies[jargon]
  • to increase financial stability[5]
  • to reduce carbon emissions, by encouraging localisation of trade and relationships
  • to encouraging use of under-used resources[2]: 2 
  • to recognise the informal economy
  • promote local businesses
  • maintaining purchasing power, value preservation

Advantages edit

Alternative currencies increase in activity if the local economy slows down, and decrease in activity if the local economy goes up.[8][dubious – discuss] They are most successful if the currency circulates within the users, in cycles or loops, as shown in an analysis of the use of Sardex by 1,477 entities in Sardinia in 2013 and 2014.[9]

Disadvantages edit

According to professor Nikolaus Läufer's theory, the use of local currencies such as Freigeld can only increase economic activity temporarily. Lengthy use of a local currency will ultimately result in a decline in economic activity and lead to a destabilization of the economy. This is due to the increased circulation velocity of the money as the amount in circulation decreases (as currencies as Freigeld reduce in value rapidly).[10][clarification needed]

Tax edit

There are some complementary currencies that are regional or global, such as the Community Exchange System, WIR and Friendly Favors, Tibex in the Lazio region in Italy or the proposed global currency terra.[11]

A community currency is a type of complementary currency that has the explicit aim to support and build more equal, connected and sustainable societies. A community currency is designed to be used by a specific group.[12]

Activists edit

Some complementary currency activists are Belgian ex-banker Bernard Lietaer, British economist Hazel Henderson, Dutch STRO-director Henk van Arkel that developed Cyclos, Qoin initiators Edgar Kampers and Rob van Hilten, Paul Glover of Ithaca HOURS, Margrit Kennedy from Monneta, LETSystem inventor Michael Linton, Time Banking inventor Edgar S. Cahn, Japanese Volunteer Labour Network founder Teruko Mizushima, Complementary Currency Resource Center coordinator Stephen DeMeulenaere, Romanian economist and entrepreneur Octavian Badescu as Minutes Bank founder and many others. Lietaer has argued that the world's national currencies are inadequate for the world's business needs, citing how 87 countries have experienced major currency crashes over a 20-year period, and arguing for complementary currencies as a way to protect against these problems.[13] Lietaer has also spoken at an International Reciprocal Trade Association (IRTA) conference about barter.[14]

List of complementary currencies edit

Name Type Country Region Active
Brixton pound Local currency United Kingdom Europe 2009–present
Bristol pound Local currency United Kingdom Europe 2009–2021
BerkShares Local currency United States North America 2006–present
Calgary Dollar Local currency Canada North America 1995–present
Chiemgauer Local currency Germany Europe 2003–present
Detroit Community Scrip Local currency United States North America 2009–present
Eco-Pesa Local currency Kenya Africa 2010–2011
Eusko Local currency Basque Country, France Europe 2013–present
Exeter Pound Local currency United Kingdom Europe 2015–2018
Eko Local currency Findhorn Ecovillage, Moray, Scotland (U.K.) Europe 2002–present
Fureai kippu Sectoral currency Japan Asia 1995
Ithaca Hours Local currency United States North America 1991–present
Kelantanese dinar Regional currency Malaysia Asia 2006–present
Lewes Pound Local currency United Kingdom Europe 2008–present
Ora Regional currency Orania, South Africa Africa 2014–present
Bon Towarowy PeKaO[dubious – discuss] Regional currency Poland Europe 1960–1989
Sarafu-Credit[dubious – discuss] Local currency Kenya Africa
Spesmilo Community currency Esperantujo (mostly Great Britain and Switzerland) Mostly Europe 1907- First World War
Stelo Europe 1945-1993
Stroud Pound Local currency United Kingdom Europe 2009–present
Toronto Dollar Local currency Canada North America 1995–2013
Tumin Local currency El Espinal, Veracruz, Mexico North America 2010–present
Convertible Minute Community currency Romania Europe 2023–present

Other non-regional complementary currencies include:

See also edit

References edit

  1. ^
  2. ^ a b Lietaer, Bernard; Hallsmith, Gwendolyn (2006). "Community Currency Guide" (PDF). Global Community Initiatives. Retrieved 18 June 2015.
  3. ^ Blanc, Jérôme (2011). "Classifying "CCs": Community, complementary and local currencies' types and generations" (PDF). International Journal of Community Currency Research. 15: 4–10.
  4. ^ Fare, Marie; Ahmed, Pepita Ould (2014). "The complementary currency systems: a tricky issue for economists". hal.archives-ouvertes.fr. Retrieved 18 June 2015.
  5. ^ a b Lietaer, Bernard; Ulanowicz, Robert; Goerner, Sally (2009). "Options for Managing a Systemic Bank Crisis". S.A.P.I.EN.S. 2 (1).
  6. ^ . Archived from the original on 13 March 2009. Retrieved 2 March 2009.
  7. ^ DeMeulenaere, S. (2007). "2006 Annual Report of the Worldwide Database of Complementary Currency Systems" (PDF). International Journal of Community Currency Research. 11: 23–35. doi:10.15133/j.ijccr.2007.003. ISSN 1325-9547.
  8. ^ Stodder, James (January 2005). (PDF). Archived from the original (PDF) on 30 August 2017. Retrieved 3 April 2014.
  9. ^ Iosifidis, George; Charette, Yanick; Airoldi, Edoardo M.; Littera, Giuseppe; Tassiulas, Leandros; Christakis, Nicholas A. (November 2018). "Cyclic motifs in the Sardex monetary network". Nature Human Behaviour. 2 (11): 822–829. doi:10.1038/s41562-018-0450-0. ISSN 2397-3374. PMID 31558815. S2CID 256713022.
  10. ^ Läufer, Nikolaus (31 December 2006). (in German). University of Konstanz. Archived from the original on 20 November 2012. Retrieved 3 April 2014.
  11. ^
  12. ^ "People Powered Money: designing, developing and delivering community currencies" (PDF). Community Currencies in Action. Retrieved 17 June 2015.[permanent dead link]
  13. ^ "Bernard Lietaer Urges the Growth of New Currency", Bank Technology News, Jul. 1st, 2004.
  14. ^ . Archived from the original on 2012-10-02. Retrieved 2009-03-03.
  15. ^ . thesolutionsjournal.com. Archived from the original on 8 November 2011. Retrieved 20 March 2014.
  16. ^ . kisalfold.hu. Archived from the original on 29 August 2010. Retrieved 28 August 2010.
  17. ^ "Sardex homepage". sardex.net. Retrieved 20 March 2014.
  18. ^ The Sardex Factor, Financial Times
  19. ^ "The dollar alternatives - Ven". cnn.com. Cable News Network. Retrieved 3 April 2014.

Further reading edit

  • Glover, Paul. Hometown Money: how to enrich your community with local currency. Greenplanners, 2013.
  • Lietaer, Bernard. The Future of Money. Random House, 2001.
  • Raddon, M. Community and money: men and women making change. Montreal: Black Rose Books, 2003.
  • Suhr, Dieter (1990). The Neutral Money Network (NeuMoNe): A Critical Analysis of Traditional Money and the Financial Innovation "Neutral Money"

External links edit

  • Community Currency Magazine
  • International Journal of Community Currency Research
  • Online Database of Complementary Currencies Worldwide 2013-01-16 at the Wayback Machine
  • Social Trade Organisation
  • Secure eXchange Protocols 2020-08-13 at the Wayback Machine
  • Alternative Monetary Systems at Curlie
  • Minutes Bank

January 01, 1970
complementary, currency, this, article, needs, additional, citations, verification, please, help, improve, this, article, adding, citations, reliable, sources, unsourced, material, challenged, removed, find, sources, news, newspapers, books, scholar, jstor, fe. This article needs additional citations for verification Please help improve this article by adding citations to reliable sources Unsourced material may be challenged and removed Find sources Complementary currency news newspapers books scholar JSTOR February 2023 Learn how and when to remove this message A complementary currency is a currency or medium of exchange that is not necessarily a national currency but that is thought of as supplementing or complementing national currencies 1 3 2 2 Complementary currencies are usually not legal tender and their use is based on agreement between the parties exchanging the currency According to Jerome Blanc of Laboratoire d Economie de la Firme et des Institutions complementary currencies aim to protect stimulate or orientate the economy 3 7 They may also be used to advance particular social environmental or political goals 4 4 When speaking about complementary currencies a number of overlapping and often interchangeable terms are in use local or community currencies are complementary currencies used within a locality or other form of community such as business based or online communities regional currencies are similar to local currencies but are used within a larger geographical region and sectoral currencies are complementary currencies used within a single economic sector such as education or health care Many private currencies are complementary currencies issued by private businesses or organizations Other terms include alternative currency auxiliary currency and microcurrency Mutual credit is a form of alternative currency and thus any form of lending that does not go through the banking system can be considered a form of alternative currency Barters are another type of alternative currency These are actually exchange systems which trade only items without the use of any currency whatsoever Finally LETS is a special form of barter that trades points for items One point stands for one worker hour of work and is thus a time based currency Contents 1 Purposes 1 1 Advantages 1 2 Disadvantages 2 Tax 3 Activists 4 List of complementary currencies 5 See also 6 References 7 Further reading 8 External linksPurposes editCurrent complementary currencies have often been designed intentionally to address specific issues for example to increase financial stability 5 Most complementary currencies have multiple purposes and or are intended to address multiple issues They can be useful for communities that do not have access to financial capital and for adjusting peoples spending behavior 6 The 2006 Annual Report of the Worldwide Database of Complementary Currency Systems presented a survey of 150 complementary currency systems in which 94 respondents said that all reasons were selected among cooperation micro small medium enterprise development activating the local market reducing the need for national currency and community development 7 Aims may include resocialisation and emancipation lifeboat currencies jargon to increase financial stability 5 to reduce carbon emissions by encouraging localisation of trade and relationships to encouraging use of under used resources 2 2 to recognise the informal economy promote local businesses maintaining purchasing power value preservation Advantages edit Alternative currencies increase in activity if the local economy slows down and decrease in activity if the local economy goes up 8 dubious discuss They are most successful if the currency circulates within the users in cycles or loops as shown in an analysis of the use of Sardex by 1 477 entities in Sardinia in 2013 and 2014 9 Disadvantages edit According to professor Nikolaus Laufer s theory the use of local currencies such as Freigeld can only increase economic activity temporarily Lengthy use of a local currency will ultimately result in a decline in economic activity and lead to a destabilization of the economy This is due to the increased circulation velocity of the money as the amount in circulation decreases as currencies as Freigeld reduce in value rapidly 10 clarification needed Tax editThere are some complementary currencies that are regional or global such as the Community Exchange System WIR and Friendly Favors Tibex in the Lazio region in Italy or the proposed global currency terra 11 A community currency is a type of complementary currency that has the explicit aim to support and build more equal connected and sustainable societies A community currency is designed to be used by a specific group 12 Activists editSome complementary currency activists are Belgian ex banker Bernard Lietaer British economist Hazel Henderson Dutch STRO director Henk van Arkel that developed Cyclos Qoin initiators Edgar Kampers and Rob van Hilten Paul Glover of Ithaca HOURS Margrit Kennedy from Monneta LETSystem inventor Michael Linton Time Banking inventor Edgar S Cahn Japanese Volunteer Labour Network founder Teruko Mizushima Complementary Currency Resource Center coordinator Stephen DeMeulenaere Romanian economist and entrepreneur Octavian Badescu as Minutes Bank founder and many others Lietaer has argued that the world s national currencies are inadequate for the world s business needs citing how 87 countries have experienced major currency crashes over a 20 year period and arguing for complementary currencies as a way to protect against these problems 13 Lietaer has also spoken at an International Reciprocal Trade Association IRTA conference about barter 14 List of complementary currencies editName Type Country Region Active Brixton pound Local currency United Kingdom Europe 2009 present Bristol pound Local currency United Kingdom Europe 2009 2021 BerkShares Local currency United States North America 2006 present Calgary Dollar Local currency Canada North America 1995 present Chiemgauer Local currency Germany Europe 2003 present Detroit Community Scrip Local currency United States North America 2009 present Eco Pesa Local currency Kenya Africa 2010 2011 Eusko Local currency Basque Country France Europe 2013 present Exeter Pound Local currency United Kingdom Europe 2015 2018 Eko Local currency Findhorn Ecovillage Moray Scotland U K Europe 2002 present Fureai kippu Sectoral currency Japan Asia 1995 Ithaca Hours Local currency United States North America 1991 present Kelantanese dinar Regional currency Malaysia Asia 2006 present Lewes Pound Local currency United Kingdom Europe 2008 present Ora Regional currency Orania South Africa Africa 2014 present Bon Towarowy PeKaO dubious discuss Regional currency Poland Europe 1960 1989 Sarafu Credit dubious discuss Local currency Kenya Africa Spesmilo Community currency Esperantujo mostly Great Britain and Switzerland Mostly Europe 1907 First World War Stelo Europe 1945 1993 Stroud Pound Local currency United Kingdom Europe 2009 present Toronto Dollar Local currency Canada North America 1995 2013 Tumin Local currency El Espinal Veracruz Mexico North America 2010 present Convertible Minute Community currency Romania Europe 2023 present Other non regional complementary currencies include American Open Currency Standard AOCS Commercial credit circuit 15 Community Exchange System CES global exchange network Digital gold currency Fourth Corner Exchange Local Exchange Trading Systems LETS an example of mutual credit is a type of local currency used in a number of small communities worldwide Rabakozi Taller 16 Sardex alternative currency used in Sardinia 17 18 Ven a digital currency used in Hub Culture a private social network 19 WIR Bank founded in 1934 oriented towards small and mid sized corporations Minutes Bank founded in 2023 focused on individuals as unique currency generatorsSee also edit nbsp Money portal nbsp Numismatics portal ANCAP Barter Bancor Bearer instrument Bernard Lietaer Cardano blockchain platform Collaborative finance Commodity money Community currency Community wealth building Company scrip Conder token Credit money Cryptocurrency Currency substitution Cyclos Digital currencies Digital gold currency E C Riegel proposed the Valun Private Enterprise Money System Flex dollar Freigeld LETS List of Canadian community currencies List of community currencies in the United States List of cryptocurrencies Local currency Local exchange trading system Margrit Kennedy Paul Glover activist Patacon Private bank Sectoral currency Silvio Gesell Tim Jenkin Time Banking Tumin Urstromtaler Ven currency WIR Bank Worgl experiment World currencyReferences edit Costanza Robert et al Complementary Currencies as a Method to Improve Local Sustainable Economic Welfare University of Vermont Draft 12 December 2003 a b Lietaer Bernard Hallsmith Gwendolyn 2006 Community Currency Guide PDF Global Community Initiatives Retrieved 18 June 2015 Blanc Jerome 2011 Classifying CCs Community complementary and local currencies types and generations PDF International Journal of Community Currency Research 15 4 10 Fare Marie Ahmed Pepita Ould 2014 The complementary currency systems a tricky issue for economists hal archives ouvertes fr Retrieved 18 June 2015 a b Lietaer Bernard Ulanowicz Robert Goerner Sally 2009 Options for Managing a Systemic Bank Crisis S A P I EN S 2 1 Faludi Jeremy Complementary Currency For Bootstrapping But Not For Everything Worldchanging 4 October 2005 Archived from the original on 13 March 2009 Retrieved 2 March 2009 DeMeulenaere S 2007 2006 Annual Report of the Worldwide Database of Complementary Currency Systems PDF International Journal of Community Currency Research 11 23 35 doi 10 15133 j ijccr 2007 003 ISSN 1325 9547 Stodder James January 2005 Implications for Macroeconomic Stability PDF Archived from the original PDF on 30 August 2017 Retrieved 3 April 2014 Iosifidis George Charette Yanick Airoldi Edoardo M Littera Giuseppe Tassiulas Leandros Christakis Nicholas A November 2018 Cyclic motifs in the Sardex monetary network Nature Human Behaviour 2 11 822 829 doi 10 1038 s41562 018 0450 0 ISSN 2397 3374 PMID 31558815 S2CID 256713022 Laufer Nikolaus 31 December 2006 Natural Economic Order Theories or Freiwirtschaftslehre Silvio Gesell in German University of Konstanz Archived from the original on 20 November 2012 Retrieved 3 April 2014 B Rietaer Global Complementally Currency Making Money Sustainable Environmental Research Quarterly Vol 125 pp 53 59 2002 People Powered Money designing developing and delivering community currencies PDF Community Currencies in Action Retrieved 17 June 2015 permanent dead link Bernard Lietaer Urges the Growth of New Currency Bank Technology News Jul 1st 2004 Barter and Cashless Trading Summit to Promote Collaboration of International Reciprocal Trade IRTAs 26th Annual Conference Is The First of Its Kind PRWEB Jul 22nd 2005 Archived from the original on 2012 10 02 Retrieved 2009 03 03 Making Money for Business Currencies Profit and Long Term Thinking thesolutionsjournal com Archived from the original on 8 November 2011 Retrieved 20 March 2014 Fizetoeszkoz lesz a Rabakozi Taller kisalfold hu Archived from the original on 29 August 2010 Retrieved 28 August 2010 Sardex homepage sardex net Retrieved 20 March 2014 The Sardex Factor Financial Times The dollar alternatives Ven cnn com Cable News Network Retrieved 3 April 2014 Further reading editGlover Paul Hometown Money how to enrich your community with local currency Greenplanners 2013 Lietaer Bernard The Future of Money Random House 2001 Raddon M Community and money men and women making change Montreal Black Rose Books 2003 Suhr Dieter 1990 The Neutral Money Network NeuMoNe A Critical Analysis of Traditional Money and the Financial Innovation Neutral Money External links editThis article s use of external links may not follow Wikipedia s policies or guidelines Please improve this article by removing excessive or inappropriate external links and converting useful links where appropriate into footnote references November 2019 Learn how and when to remove this message Community Currency Magazine International Journal of Community Currency Research Online Database of Complementary Currencies Worldwide Archived 2013 01 16 at the Wayback Machine Social Trade Organisation Secure eXchange Protocols Archived 2020 08 13 at the Wayback Machine Trade Point Internal currency of Barter platform Alternative Monetary Systems at Curlie Minutes Bank Retrieved from https en wikipedia org w index php title Complementary currency amp oldid 1224263237, wikipedia, wiki, book, books, library,

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