A few towns and cities in the UK have set up their own local currency schemes to promote local sustainability. However, local currency doesn't benefit from the same consumer protection as banknotes. Local currency schemes aim to boost spending within the local community and, in particular, among locally owned businesses. In addition, there may be other grounds for companies to participate, such as promotion in the scheme’s marketing material. Participation by both businesses and consumers might also reduce environmental footprints as well as signal a commitment to supporting the local community.
Central bank money:
3 Key Functions of money;
- Medium of exchange, with which to make payments.
- Store of value, with which to transfer ‘purchasing power’ (the ability to buy goods and services) from today to some future date.
- Unit of account with which to measure the value of any particular item that is for sale.
Money can essentially be thought of as a claim (or 'IOU') from one person to another. Historically gold or silver was used as a medium of exchange or to later date, a store of value.
Examples of local currency schemes:
- In 1832, the social reformer, Robert Owen, set up two 'national equitable labour exchanges' in London and Birmingham. He was concerned about the worsening living conditions of the working class so introduced 'labour notes' to pay workers in terms of the number of hours they spent to create units of production. The idea was to distribute wealth more equally to the working class. Despite initial success, the scheme lasted just two years owing to organisational failures.
- The Bristol Pound, local complimentary currency launched in Bristol in 2012. Its primary aim is to support independent traders in order to maintain diversity in business around the city. The scheme is a joint not-for-profit enterprise between Bristol Pound Community Interest Company and Bristol Credit Union. All the designs are done by local artists, reflecting or relating to Bristol.
No comments:
Post a Comment