The next money: As the big economies falter, micro-currencies rise

Eric Garland writes: People everywhere are fed up with the status quo of the economy. With the passion our official institutions show for this tepid “recovery,” many are concluding that progress will come not from the current system, which is after all what got us here in the first place, but from their own ingenuity and inventiveness. In pockets around the world, folks are declaring economic independence by starting small, local, but potentially revolutionary alternative currencies that could change not only how we buy goods and services — but how we relate to one other in society. If these micro-currencies catch on, we could be witnessing the replacement of our monocultural monetary system, which emphasizes a certain sort of free market capitalism above all else, with a variety of currencies that will represent more diverse sets of values belonging to the groups that hold them.

The next time you’re in the southside of London, you might find yourself standing next to a man purchasing his chicken tikka with pounds sterling that feature, rather than the Queen of England, David Bowie in his Ziggy Stardust era. The man isn’t a counterfeiter with a love of 70s glam rock, but a resident of Brixton proudly using the Brixton Pound, a “complementary currency” meant to revitalize the famously tough London borough by encouraging people to spend their money as close to home as possible. Started in September 2009, the Brixton pound can now be used at 200 local businesses, some of which offer special deals to those who use the currency instead of plain-old pounds sterling. Not that normal British currency is useless: the Brixton pound is pegged directly to its national cousin, and all the notes in circulation are backed by sterling located at a local bank. The scheme is small in scope and totally transparent. And while the paper money is gorgeous and meaningful, it will soon be expanded to allow people to spend their Brixton pounds by text message.

Brixton is one of four “Transition Towns” in the United Kingdom — the others are Totnes, Lewes, and Stroud — currently using local currencies. The effort to energize local merchants and inspire local consumers to incorporate their values into their commerce may also be inspiring others. [Continue reading…]

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One thought on “The next money: As the big economies falter, micro-currencies rise

  1. delia ruhe

    I have been waiting for this. People tend to forget how popular unofficial currencies were during the recession of the early 1980s. This takes the concept one step further.

    But mostly, as a response to globalization it’s a triumph. When the richest city in Canada — Calgary — is using Calgary Dollars, that gives the finger to the very system that has enriched them. I’m right next door to Alberta, in Saskatchewan, the next richest province. I hope the idea catches on in my city, Saskatoon, which is the fastest growing city in Canada. It would be a way to get more people to shop at our wonderful, organic Farmers’ Market.

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