Global Ecovillage Network/Solution Library/Social currencies

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The international system of currencies deliberately hinders the development of local economies, making it difficult to increase trade and exchange between different members of the same community. That same system creates a sense of an economy that is separate from the idea of working for people and helping them to satisfy their needs. The projects and communities that do aim to be ecologically and socially sustainable and resilient must also face the challenge of being economically viable. “The first step for any community aiming to become more self­reliant is therefore to establish its own currency system” Richard Douthwaite

Social currency is used as a tool to develop the local and solidarity economy in an area. It helps to generate exchanges between individuals possible where a lack of “official currency” is a limiting factor. Social currency is created and destroyed based on real economic activity that occurs between entities and individuals. It is a local currency, which produces no interest and no motivation to accumulate it. This eliminates the possibility of speculation with it and this helps to facilitate local trade.

Some of the social currencies base some of their operation on bonuses given to consumers with every purchase. These bonuses aim to broaden the impact of the solidarity economy and develop extensive networks that can operate with a currency that gives proper consideration to social and ecological criteria. References: http://ccmag.net/ http://www.gmlets.unet.com/ http://cooperativa.cat/en/economic­system/social­currency­2/ http://en.wikipedia.org/wiki/Social_currency https://madrid.mercadosocial.net/monedafaq.php#2 Submitted by Altekio

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