Enter a local community currency – different from a digital alternative currency, like Bitcoin. A local or regional currency is one that can be earned and traded within the community. Local currencies have the option to add value in addition to a numeric monetary amount, which they do with an aim to add value to the community and local economy that they operate within. Alternative currencies can work as time banks, adding value to volunteer work and time spent helping out in ways specifically needed, or to a business or individual lending out their tools and supplies to other community members. Japan’s current economic recession is resting in part on a lack of childcare and care for elders in the community. One of the solutions in place is time banking in which residents can earn hours to their credit for time spent caring for their neighbors’ kids or helping out running errands for a community elder.

 

Each paper note printed denotes the amount of value for the labor hours put into the program, and can be spent at participating local retailers, in exchange for fresh produce, and for a range of goods and services in the community.

Local and alternative currencies also provide a buffer against economic recessions by allowing the local economy to operate on a currency other than the dollar, which is tied to our national and international monetary policies and debt levels. A local currency helps to insulate the local economy and keep wealth in the region, which is not a new idea – {Greenbacks} were issued for the same purpose during the American Civil War, as were British {Treasury Notes} and German {Kriegsgeld} during the First World War. Local currencies like these are designed to function just like the traditional currency, but can be spent only between a designated group or locally. They are most often printed and then distributed at a discounted rate to encourage adoption.