The Use of Community Currency
While there are merits and demerits to all of these systems, it is vital that we realize the issue of monetary reform is not constrained to hoped-for changes to our current system that will possibly be implemented one day in the future in all-at-once changeover. In fact, there exists right now the globe examples of alternative currencies that are currently existing alongside the Federal Reserve notes and Euros and other bankster-manipulated debt-based fiat money systems that are already helping facilitate transactions and grow local economies all around the globe.
These alternative systems do not require a resolution to be passed in congress or parliament, and do not require any wholesale change in the international financial order. These currencies already exist and are already thriving in numerous localities around the globe. Referred to as complementary currencies, they provide a way for communities to bypass the inflation tax and arbitrary confiscation that defines the modern era of central-bank administered currency. Just as the fiat money printed up by these central banks are backed up by the collateral of the people’s promise to pay later through the sweat of their own labor, so too can these complementary currencies be issued through the people’s own labor. The difference being that in this system, the money is not controlled by bank, but by the people themselves.
How Bancor can aid the use of Community Currency?
The blockchain provides the foundation to design complementary currencies that embellish community relationships, drive regional economic growth and encourage self-sustainability. The local multiplier effect is the underlying benefit of using complementary currencies. The local multiplier effect occurs when one form of economic activity affects another.
Businesses using local tender tend to invest in their community, and a positive cyclical effect begins. Using complementary currencies has been shown to diversify economic development and increase the magnitude of the multiplier effect in areas participating in these alternative markets.
Bancor provides a digital solution for systems that rely on multiple consumer needs. To act as an exchange between a national currency and an alternative currency, all that is required is that the acting exchange accepts both currencies. It can be a large institution or a small network of businesses.
The ability to provide additional liquidity is what maintains Bancor as a powerful platform to create community currency.
Using the blockchain technology, complementary currencies can be exchanged in a secure environment that does not require constant upkeep. Bancor provides communities with the foundation to build currencies that suit the needs of their communities.
There are some of the advantages of the using of Community (Local) Currency:
- It provides a parallel stream of income and so reduces our dependence on money
- It bridges the ‘money gap’ between the skills/offers/talents/gifts of providers and the wants/needs that we all have. Conventional money usually can’t bridge this gap because its supply is limited or non-existent.
- It builds community by creating links with those around us who can help satisfy our requirements
- Provides a range of exchange options: time exchange, swaps, barter, gifting, sharing, time banking, metric currencies, virtual currencies
- It is democratic, it returns the ‘money power’ to the people
- It allocates credit democratically
- It keeps wealth where it is created
- many more
At economic level, a community currency can reinforce the local economy by encouraging local spending, improve the socio-economic condition of those excluded from the formal economy, or provide small businesses with complementary means of financing and payment.
Bancor Protocol is the pioneer and the new standard in the creation of community cryptocurrency and provide liquidity to make it usable instantly.