Local currencies are alternative forms of money recognized within location-specific communities, the idea behind their value being that money stay within a community in order to support local businesses. With the continuing economic decline, recent years have seen a return to local values and local currencies represent one way to invest money close to home.
Here are some examples of local currency in action:
1. Baltimore Green Currency Association, Baltimore, MD
The Baltimore Green Currency Association is a nonprofit organization that created a system where dollars are exchanged for BNotes. BNotes are redeemable at 130 participating businesses in Baltimore and the idea is to grow an alternative economy in an effort to “strengthen local businesses, create jobs, encourage the formation of local supply chains, and ultimately provide economic opportunity and increased resilience to communities underserved by traditional economic structures”.
2. The PLENTY Currency Cooperation, Piedmont, NC
The Piedmont Local EcoNomy Tender (PLENTY) is a local currency that began circulating in 2002. Co-op members accept PLENY as full or partial payment for goods or services and membership is open community members offering time, skills, or products. PLENTY is legal and taxed like any other currency, and Capital Bank in Pittsboro exchanges one PLENTY for one Federal Reserve, so the money’s value is honored. It is a system based on belief in one’s community; “In each other we trust” is printed on each bill, which feature illustrations of human, animal, and plant interactions–reminding people that money’s value is social and not just commercial.
3. BerkShares Inc., Bershire, MA
BerkShares are a local currency available in the Berkshire region of Massachusetts. Within the first nine months of circulation, over one million notes were circulated, more than 2.7 million are in use today, over 400 businesses accept them, five banks are listed as partners, and 13 branches exchange dollars for BerkShares. BerkShares Inc. reports that checking accounts, electronic transfers, ATMs, and loan programs are future possibilities.
4. The HOUR Exchange, Corvallis, OR
The HOUR Exchange is a local currency network in Benton County, Oregon, committed to ecological sustainability and community-based economics. Currency comes in the form of HOUR notes and one HOUR is worth an hour of labor, or ten dollars (a fair hourly wage). Like any other work, an hour of labor can be worth more than one HOUR. The HOUR Exchange explains that the name for the currency should “remind us that the real source of money’s value is created by people — our time, skills, and energy.” In 2011, the HOUR Exchange celebrated its 10th anniversary and is supported by over 100 members who offer services from accounting to yoga.
5. Community Grocery Stores
The City Market Co-op in Burlington, Vermont, doesn’t operate on an official local currency, but it does embrace the idea of slow money. It is a community-owned food cooperative/grocery store that provides organic and local products at a fair price to more than 3,000 daily customers. Over 1,000 vendors are featured and because the store is member-owned, during profitable years, money is returned to co-op members through a Patronage Refund program.
Another example of a community-supported grocery store operating on slow money values is Chathum Marketplace in Pittsboro, North Carolina. When faced with an upcoming 300k payment, its Finance Committee turned to 16 local investors and refinanced the market’s bank loan; Chathum Marketplace benefited from a lower interest rate and investors were able to keep their money off Wall Street and closer to home.
To learn more about the growth of slow money, check out this article and share your thoughts with us.
Image by rose3694 on Flickr Courtesy of Creative Commons Licensing
Hometown Money is the how-to book for creating local currency.
Sounds like local currency is becoming more and more popular. I would love to see something like this in my neighborhood. The SF Local Merchants association doesn’t use an alternative currency, but it’s another great way to support your community!