Community currency
A community currency is a type of complementary currency that is used by groups with a common bond, like members of a locality, or association. For example, a local currency is a community currency.
Definition
Community currencies try to fulfill specific societal needs. Community currencies are complementary currencies limited to a specific community. This could be geographical (local currencies), but also business-based or even online.[1] They are specifically designed to meet the needs of a specific group and aim explicitly at contributing to more equal and sustainable societies. The idea behind this type of currency is thus to redesign money in order for it to better serve the society and the environment. Their design varies in function of their purpose; different purposes are identified by Community Currencies in Action:
- 1. Democratising services and organisations
- Community currencies can be a cost-effective tool to bring people actively into the process of solving the needs of their community. Example: time credits for volunteering encourage people to actively engage in their community while making services, such as elderly care, more democratic. (Zeitvorsoge, Makkie)
- 2. Supporting the Small and Medium Enterprises (SME) economy
- Community currencies can serve as a means to promote independent shops over large corporations since they keep on circulating locally. They can also help SMEs support each other financially by lending and receiving credit, goods and services within the currency network. Finally, introducing a community currency allows raising people’s awareness of their consumer behaviour and can improve community cohesion. Local currencies are an example of this. (Bristol Pound, SoNantes, TradeQoin, Chiemgauer)
- 3. Countering inequality and social exclusion
- Specially designed currencies can address inequality issues by giving everyone the chance to get involved in their community; for instance by rewarding participation in voluntary programs. (Spice Time Credits, Makkie)
- 4. Addressing environmental impacts
- Community currencies can play a role in better valuation of environmental resources and incentivizing more sustainable behaviour. The Belgian e-Portemonnee for instance rewards residents for environmentally positive actions such as composting. Reward currencies can also encourage businesses to adopt more environmentally sound practices.
Philosophy
According to the New Economics Foundation partner Community Currencies in Action:
| “ | ... money is simply a social technology and the ways in which it is designed, produced and controlled – far from being neutral or predetermined factors – all influence the effects it has upon society at large. | ” | |
| — People Powered Money: designing, developing and delivering community currencies[1]:41 | |||
Community currencies therefore aim at using money as a tool to achieve certain social or environmental objectives.
References
- 1 2 "People Powered Money: designing, developing and delivering community currencies" (PDF). Community Currencies in Action. Retrieved 17 June 2015.